What to expect from Pravin
Budget 2017: Hard truths to face
The severity of SA’s fiscal squeeze is going to hit home when it is made clear that the country has reached its financial limits
For a while now finance minister Pravin Gordhan has been tightening the screws on taxpayers and government spending, while trying to plug revenue shortfalls with savings by reprioritisation and by running down the contingency reserve. These measures have taken SA only so far. After five years of disappointing growth, national treasury has emptied its box of fiscal tricks, and only hard choices remain. The 2017 national budget is where the rubber hits the road. The message Gordhan is likely to emphasise when he tables the budget on February 22 is that SA has reached its fiscal limits and that everything must be done to rebuild confidence and bolster fixed investment, on which growth depends. A year ago, Gordhan managed to balance the books without resorting to draconian tax hikes. He relied mainly on making above-inflation increases to a wide range of indirect (consumption) taxes and providing impartial relief for fiscal drag. Personal income tax (PIT) hikes were avoided. But after t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.