On balance, applause for a budget crafted in a difficult time
Changes to taxes were the most widely anticipated measures in the run-up to the budget — and have proved the most divisive issue in post-budget assessments
Finance Minister Pravin Gordhan and his Treasury team have been praised for delivering a budget that balances calls for transformation with SA’s precarious fiscal reality. "Gordhan understands that fiscal rectitude is necessary for the growth and transformation of SA’s economy," said Wits University economist Dr Kenneth Creamer. Nedbank economists said: "Treasury’s vision of radical transformation is one of inclusive‚ win-win growth," quoting Gordhan as saying: "This is not a transformation to be achieved through conquest‚ conflict or extortion‚ as in our past." Gordhan cut government spending by R26bn over two years but increased spending on social projects — notably on higher education, in response to calls for better funding for students and even for free higher education. Taxes At the same time, a package of tax increases to bring in an extra R28bn was introduced, with R4.4bn of that coming from higher income taxes on SA’s top 100,000 earners. "It is widely understood that there...
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