Gigaba's budget runs out of other people's money

Posted 25 October 2017

Finance minister Malusi Gigaba's medium term budget is bereft of ideas. In the words of former UK prime minister Margaret Thatcher, the problem with socialism is you eventually run out of other's people's money. Here is a budget that makes it clear the money has run out and the government has no idea how to solve the problem - so, all major decisions have been deferred to February next year. The welfare state continues to grow, government hopes spending on infrastructure will ignite growth, and the projected revenue shortfall of R50bn may have to be settled through the sale of Telkom shares and other state-owned assets. 

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Gordhan's growth targets best served with a pinch of salt

Posted 28 February 2017

Come budget time, government habitually overestimates growth. That throws out budgeting forecasts and would help explain the R30.4 billion shortfall in revenue collection last year. But 7 out of the last 8 budgets have over-estimated growth, so we should treat government forecasts (and budgets) with a pinch of salt, says Moneyweb.

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Gordhan's budget may not save SA from ratings downgrade

Posted 23 February 2017

Finance minister Pravin Gordhan's 2017 budget was probably the best he could do under the circumstances. It was probably enough to stay ratings agencies’ hands but SA remains on the brink of a downgrade and political uncertainty could tip the scales, economists warn. 

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Gordhan's budget was a bid to save SA from credit junkyard

Posted 01 March 2016

Pravin Gordhan's budget was aimed not so much at trade unions or the party faithful, but at the ratings agencies, writes Tony Leon. History teaches us that a country which loses its credit rating is indeed headed for the junkyard.

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The Budget in a nutshell

Posted 24 February 2016

Higher taxes on the rich, a freeze on public sector hiring, a valiant if over-optimistic attempt to rein in public debt - it's all there in the Budget announced today by finance minister Pravin Gordhan. Here are the highlights.

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Budget reaction: smiles and tears

Posted 24 February 2016

Opposition parties were less than enamoured with much of what finance minister Pravin Gordhan announced in his latest budget today. Here we take a look at some of the reaction from Grant Thornton executives.

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Mixed reaction to Budget speech

Posted 25 February 2015

The ANC government was generally slammed for a Budget that saw personal income tax rates for the first time in 20 years, while not nearly enough was being done to tackle government spending and crony capitalism, according to opposition MPs.

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2015 Budget: key highlights

Posted 25 February 2015

The 2015 Budget was tabled today by finance minister Nhlanhle Nene. It contains a 1% hike in tax rates for middle to high-income earners, increased road accident levies, but also a serious effort by government to curtail spending.

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Tax increases unnecessary, says DA

Posted 24 February 2015

The Democratic Alliance came out swinging ahead of SA's Budget speech, arguing that the well-publicised and expected increases in taxes are not necessary. Rather, the government should cut back on wasteful spending and start selling off state-owned assets.

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Number of consumers applying for debt review up more than 50% in one year

Posted 12 February 2015

Figures from the Debt Counsellors Association of SA shows a more than 50% increase in the number of consumers applying for debt review over the last 18 months. That shocking bit of news will weigh heavily on Finance Minister Nhlanlha Nene as he prepares his Budget Speech for next week.

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Infrastructure spending to reach R847bn over next three years

Posted 26 February 2014

Budget update: government plans to spend R847bn over the next three years on public infrastructure, with signature projects such as Medupi power station, Transnet and Metrorail upgrades and a nearly 50% increase in social projects over the next two years. 

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Gordhan delivers pre-election budget that appeals to the poor

Posted 26 February 2014

Finance minister Pravin Gordhan delivered a pre-election budget today that talked up the ANC's achivements over the last five years and appealed to the poor and the disaffected. 

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