Finance Minister Pravin Gordhan takes to the podium in Parliament on Wednesday to deliver the most important economic data of the week: SA’s budget. Gordhan will do this against the backdrop of belt-tightening by the state, which has been met with some resistance, but SA has to contain its deficit and curb spending. Tourism and migration, and the producer price index (PPI) numbers are also coming out this week. Investec economist Kamilla Kaplan said: "Against a backdrop of weak growth, fiscal consolidation will be achieved through expenditure and revenue-side measures." The Treasury has forecast a 3.1% deficit in 2017-18. The deficit is expected to narrow to 3% in 2018-19. But Gordhan has the huge task of raising taxes and cutting expenditure without compromising growth. Old Mutual Investment Group economist Johann Els said: "With the current fiscal year running R5bn short, due to slower tax growth and slight overspending, they will need to go bigger on tax increases and expenditure...
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.