Finance Minister Pravin Gordhan prepared the public in the October 2016 medium-term budget policy for some bad news including that tax increases would be a foregone conclusion. The budget, however, is more than just income items: it is also how money is appropriated and how we fund things for which we cannot raise enough money. But the government’s ever-growing need to fund itself seems to increase constantly rather than stabilise. The most significant number in the budget was probably the substantial increase in total expenditure to R1,56-trillion, up from R1,45-trillion, which is a 7.5% increase. This seemingly represents a vote of no confidence in the private sector in achieving the country’s noble political goals. It also reiterates government’s belief that its investment will produce better economic returns than what the private sector can achieve — thus the policy of greater public sector involvement. As predicted, Gordhan has been loathe to raise VAT, notwithstanding his conc...
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