Eight trends business does not want to see in Gordhan’s Budget
An unstable political environment can force the government to make less business-friendly decisions that jeopardise economic growth
Economic policies and market regulations set by the government can have a profound impact on companies’ competitiveness and profitability. In MMI Holdings’ view, the political backdrop is key in setting policies and reforms. An unstable political environment can force the government to make less business-friendly decisions that jeopardise economic growth in the long run. As such, government decisions on Budget issues need to balance revenue generation with creating a business environment that nurtures growth. In this light, companies are likely to be disappointed if these eight trends emerge in Finance Minister Pravin Gordhan's national Budget to be tabled this week, on February 22: 1. Irresponsible management of SA’s finances Mismanagement and a lack of accountability of government finances raise a red flag for rating agencies. Given that South Africa is teetering on the brink of sub-investment-grade status, public funds must be managed and spent responsibly and transparently. If...
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