The government plans to raise taxes, reduce public sector employment and cut allocations to provinces and municipalities over the next three years to fund the hole that has been created by less-than-forecast tax collections, a weak economy and a R17.6bn additional allocation for higher education. As Finance Minister Pravin Gordhan unveiled the plans of the medium-term budget policy statement in the National Assembly on Wednesday, the loud blasts of police firing stun grenades at protesting students resounded outside the parliamentary precinct. The minister told the media ahead of his speech that the next two years, in particular, would be tough with low economic growth unable to generate sufficient tax revenue to support the government’s previously articulated plans.Alluding to the charges against him by the National Prosecuting Authority last week, Gordhan said that while "the legal challenges were unsettling" the greater problem was the rise of anger and violence in communities, s...
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