Economy

Economists forecast increased Defence spending in SA’s 2025 budget

Date: Feb 19, 2025

Ahead of South Africa's (SA) 2025 Budget Policy Statement to be delivered by Finance Minister Enoch Godongwana in Cape Town this afternoon, economists are anticipating a rise in the Defence Department's funding.

Senior Economist at global consultancy firm Price Waterhouse Coopers (PWC), Xhanti Payi, predicts that the department could see a significant increase in its budget allocation in response to recent security developments.

This follows the tragic deaths of 14 SA soldiers in eastern Democratic Republic of Congo (DRC) over two weeks ago, where they were caught in violent clashes between M23 rebels and the Congolese military. The incident has reignited calls for the withdrawal of South African forces deployed to the region, with some critics arguing that the soldiers are inadequately resourced due to chronic underfunding of the Defence Department.

Payi highlighted the growing pressure to increase military funding, stating, “The Defence sector is likely to see an increase in spending. Historically, we’ve seen gradual cuts or minimal increases in Defence funding. Last year, it was only raised by 1%. However, considering recent events in the DRC, where SA soldiers lost their lives, there will be a political push to substantially increase funding for Defence.”

--SABC/ChannelAfrica--

Comments

comments powered by Disqus

Web Content Viewer (JSR 286)

Actions
Loading...
Complementary Content
CLOSE

Your Name:*

Your Email:*

Your Message:*

Enter Captcha:*