BRIAN KANTOR: Budget shows government is starting to get its policy mix right
A broad reform agenda brings the perks of public servants back in line with the rest of the economy
The 2020 budget tax and expenditure proposals are steps in the right direction for the SA economy. Holding the line on real government spending and avoiding a growth-defeating increase in tax rates is part of the right mix of policies.
The SA economy is hostage to fortune as well as to its economic policy proposals. Market reaction to the coronavirus overtook the budget proposals, which were initially well received in the marketplace. RSA 10-year bond yields were 8.76% per annum the day before the budget and 60 basis points lower immediately after the budget news. They were up to 9.1% on March 2, declined to 8.76% on March 4 after the US Federal Reserve (Fed) cut its benchmark rate by 50 basis points to prevent coronavirus fallout — US 10-year Treasury bond yields dropped to 1%...
BL Premium
This article is reserved for our subscribers.
A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.
Already subscribed? Simply sign in below.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now