Economists see growth potential in 2025 budget but warn of consumer strain
There are measures to foster growth and maintain fiscal discipline, while tax hikes with no relief pile pressure on consumers
13 March 2025 - 12:11
The 2025 budget has drawn a mixed response from economists, who largely agree that it contains measures to foster economic growth and maintain fiscal discipline while placing additional strain on consumers through tax hikes and a lack of relief for personal income taxpayers.
“Although it has pro-growth components, it still remains a pretty elite budget in that your personal income taxes of R811m are less than the public sector wage bill of R822.8bn and your debt service cost of R424bn is a lot larger than your corporate income tax take at R331bn,” said Frank Blackmore, lead economist at KPMG SA...
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