
VAT hike scaled back, but social grants take the biggest hit
With the government now R8.6 billion short, planned social grant increases have been slashed – while Home Affairs and border management also see deep budget cuts.
With the government now R8.6 billion short, planned social grant increases have been slashed – while Home Affairs and border management also see deep budget cuts.
Instead of hiking VAT, the government could fix its tax collection problems, improve state resource management, and stimulate the economy to boost revenue.
Financial planners weigh in on the fallout and why investors should stay calm.
With South Africa’s debt-to-GDP ratio at 75.1%, Finance Minister Enoch Godongwana faces a tough balancing act – can his Budget Speech reassure investors and spark economic growth?
PSG Asset Management warns that market complacency, overconcentration in US equities, challenging starting valuations, and potential policy risks could make the next decade challenging for investors.
Stable growth and fiscal discipline could see South Africa’s credit rating rise two notches in the next three years.
Progress with implementing National Health Insurance will be contingent on the fiscal situation.
MPs are also told that the fiscus cannot afford a permanent and expanded Social Relief of Distress grant without tax increases.
The Medium-Term Budget Policy Statement reveals a budget surplus and reduced wage bill, but it warns of ongoing financial pressures due to modest economic growth projections.
Having reached the target of 4.5% with ‘little or no cost’, Lesetja Kganyago argues that South Africa can achieve permanently lower inflation and interest rates.
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