Speaking at the Kgalema Motlanthe Foundation’s annual Inclusive Growth Forum, Godongwana explained that while initial budget cuts may not be severe, borrowing will increase to address the situation. The minister expressed concern over South Africa's massive debt, which has reached around R4 trillion, emphasizing that servicing this debt is consuming a significant portion of government revenue.

Factors contributing to this financial strain include credit rating downgrades to junk status and South Africa being placed on the Financial Action Task Force's "grey list." Revenue has fallen due to a combination of factors, including load-shedding and allegations related to the supply of weapons to Russia. Godongwana warned that continued declining revenue and increasing expenditure could lead to a serious financial challenge. While there's debate about using the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), concerns about its associated costs have been raised by the Reserve Bank deputy governor.

The government is under pressure to continue payments for the "social relief of distress grant" and provide wage increases to public sector workers, all while grappling with state-owned entities seeking bailouts. In this challenging financial environment, Godongwana has urged the need for fiscal discipline and structural reforms to grow the economy and address the country's financial issues.