ON THE MONEY
PETER ATTARD MONTALTO: A scythe to the fiscal mania
The frenzy in the run-up to the medium-term budget should be seen for what it is — mistaking temporary for permanent shocks
09 October 2023 - 05:00
The moving of the medium-term budget policy statement to November 1 allows more time for more mania. As usual, people will miss the difference between temporary and permanent fiscal shocks and that each needs different solutions.
The market and media seemed to lose its head on Friday at a throwaway comment from an analyst that there was “perhaps” the need for a VAT hike — ignoring that tax hikes are never announced at a medium-term budget. While the National Treasury could theoretically pencil one in from April without announcing it now, it is politically impossible before elections. ..
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