Ahead of Wednesday's budget speech, financial experts are wondering where Finance Minister Pravin Gordhan will get revenue to work with.
Focus has fallen on the possibility of tax hikes.
Financial experts say consumers who are already under pressure, are in for a shock. They say the emerging middle class will be the hardest hit.
Government is under pressure to collect more revenue. The economy continues to slowdown and prospects of a downgrade loom.
A World Bank report shows we teeter on the brink of a recession. Revenue collection since last year's medium term budget Policy's statement was revised down to R 7 billion.
Economists say there will be a short fall of between R 12 and 22 billion in actual revenue collection for the current year.
We will seek to increase investment by the 2017 budget
Gordhan will also be dealing with the possibility of a downgrade.
He will have to convince investors and rating agencies that confidence in the economy can be achieved.
Gordhan will have to explain what government will do differently to avoid a downgrade to junk status.
He will have to deliver what he promised when he was re-appointed last year.
Gordhan says, “We will seek to increase investment by the 2017 budget. We are going to double our efforts to ensure that efficiency of expenditure across the public service. We have been clear that one of the risks to our fiscal framework is the financial state of state owned companies."