Budget blues: From fuel hikes to more sin taxes
Those who smoke and drink — but even those obliged to drive — will feel the pinch of the 2019 budget's so-called sin taxesthe tertiary title
Here are four budget blues that will affect many.
Finance minister Tito Mboweni delivered his 2019/2020 budget speech in Parliament on Wednesday‚ and the message is clear: South Africans need to tighten their belts.— Public-sector wage bill Mboweni announced that the public-sector wage bill will be cut by R37bn in the next three years through early retirement and natural attrition. No additional funds will be allocated towards salaries. He said the wage bill is unsustainable and reducing it will give public servants the opportunity to retire early. Business Day reported that early retirement of public servants could cost the government about R16bn over the next two years. The government is also expected to remove performance bonus payments to cut costs. Tax revenue The tax revenue shortfall for the 2018/2019 fiscal year is estimated to be R42.8bn‚ which is R15.4bn more than estimated in the medium-term budget policy statement (MTBPS) in October. According to Mboweni‚ about hal...