Krutham MD Peter Attard Montalto joins Nompu Siziba on SABC News to discuss the 2025 national budget.

“Neither party wants a VAT hike. If one is implemented, it would suggest that Treasury has been unable to secure spending cuts elsewhere or to convince cabinet of its ability to borrow more. That said, we are not as pessimistic as some. Excluding the two-pot retirement reform, revenues are only slightly below previous projections. Additionally, there are significant reserves that Treasury has allocated in the budget for the next fiscal year, approximately R20bn, after accounting for the SRD grant. This provides the minister with considerable flexibility,” says Attard Montalto.

Watch the full clip below.