Michael Avery and guests preview the 2022 budget speech
22 February 2022 - 16:42
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Finance minister Enoch Godongwana expected to shed light on how he plans to balance rising debt and social spending when he delivers the budget this week. Picture: ESA ALEXANDER
What do they say about statistics being like bikinis: conspicuous for what they conceal more than reveal? One could argue the same thing about SA’s recent revenue windfall, which some say will paper over the cracks in the country’s fiscal position.
But peel away that temporary largesse and the facts are stark. We spend 12.7c of every rand collected in taxes on serving government’s ballooning debt. Along with over 33c paying government wages and another 20c on social grants. That leaves roughly 34c to spend on everything else.
If this was your household and you were paying your children a fifth of your salary to live with you after school, a third of your salary on your household staff and borrowing to fund the monthly groceries while paying 12% of your salary to service your credit card, you’d be sent to debt counselling.
But, more than that, the country finds itself on the horns of a political dilemma hitherto unseen in the democratic era: record unemployment, social unrest and insurrection are riding roughshod over confidence. The reform train, while moving, has yet to gather the required momentum to convince markets SA is a welcome place for investment.
Let’s welcome our panel to preview the budget: Mamello Matikinca, chief economist at FNB; Dr Miriam Altman, economist and professor of 4IR at UJ; Peter Attard Montalto, head of capital markets research at Intellidex; and Mathew Parks, parliamentary co-ordinator for Cosatu.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BUSINESS WATCH WITH MICHAEL AVERY
WATCH: Budget 2022 preview
Michael Avery and guests preview the 2022 budget speech
What do they say about statistics being like bikinis: conspicuous for what they conceal more than reveal? One could argue the same thing about SA’s recent revenue windfall, which some say will paper over the cracks in the country’s fiscal position.
But peel away that temporary largesse and the facts are stark. We spend 12.7c of every rand collected in taxes on serving government’s ballooning debt. Along with over 33c paying government wages and another 20c on social grants. That leaves roughly 34c to spend on everything else.
If this was your household and you were paying your children a fifth of your salary to live with you after school, a third of your salary on your household staff and borrowing to fund the monthly groceries while paying 12% of your salary to service your credit card, you’d be sent to debt counselling.
But, more than that, the country finds itself on the horns of a political dilemma hitherto unseen in the democratic era: record unemployment, social unrest and insurrection are riding roughshod over confidence. The reform train, while moving, has yet to gather the required momentum to convince markets SA is a welcome place for investment.
Let’s welcome our panel to preview the budget: Mamello Matikinca, chief economist at FNB; Dr Miriam Altman, economist and professor of 4IR at UJ; Peter Attard Montalto, head of capital markets research at Intellidex; and Mathew Parks, parliamentary co-ordinator for Cosatu.
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