WATCH: Budget: Where will the money go to?

Johannesburg - How the tax deficit will be bridged, what projects government will commit to and what perception the budget speech will give to the market will be keenly watched, according to a tax expert.

Andrew Wellsted, head of tax at Norton Rose Fulbright, told Fin24 it will be interesting to see how Finance Minister Pravin Gordhan will allocate money to the many pressing challenges facing the government.

"There are a number of things that needs to be addressed - energy, infrastructure, the national health insurance and fees must fall," he said.

"There are a lot of projects demanding a lot of money and in past the minister has been very conservative in his approach and we hope to see a little more of that because the economy is at risk of ratings agencies downgrading us and a range of other issues which could affect us badly."