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SA budget preview – staying the course on fiscal consolidation

17 February 2017 | Budget 2017

With many indicators of economic development in SA falling short of its debt peer group, broad political/institutional stability and macro policy continuity remain key in preserving SA’s investment grade status.

Budget 2017: Only growth can balance the books

17 February 2017 | Budget 2017

The improvement in the Main Budget primary budget balance (revenue less non-interest spending) over the past four years to an estimated -0.4% of GDP for fiscal year 2016/17, from a deficit of -2.7% of GDP in 2012/13, is a clear statement of intent. It is also a remarkable achievement in a low-growth environment with an excessive unemployment rate and rising demands on state resources.

Crucial budget needs to go bigger on tax and spending cuts to meet contraction targets

17 February 2017 | Budget 2017

The upcoming Budget will be a critical one given there is no more room for the upward revision of deficit targets as seen over the last few years. As a result of the current slow growth environment, the tax increases and expenditure cuts set in October’s Medium-term Budget have to be adhered to if Treasury is to deliver a positive Budget. This is according to Senior Economist: Old Mutual Investment Group, Johann Els, who points out, however, that, given that the current fiscal year is running about R5 billion short of target, Treasury will have to go beyond the tax and expenditure targets set in October requiring an even tighter Budget.

Budget 2017: Greater than the sum of its parts

16 February 2017 | Budget 2017

Finance Minister, Pravin Gordhan and the National Treasury, have their work cut out for them in the 2017/18 financial year. The economic stewards of our country will be working to reduce the budget deficit, and promote stronger gross domestic product (GDP) growth, while simultaneously providing the resources for a far-reaching social grant and service delivery responsibility. The funding machine that enables this is tax revenue – the primary means of income for the South African government. This lays a further challenge at the feet of the Treasury: boosting collection for the South African Revenue Service (SARS), while not overburdening the taxpayers themselves. It’s a fine balance to strike, even more so in a global environment of disruption and uncertainty.

quick poll

Question

If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?

Answer

2026, as promised 2027 looks more likely Impossible to say More consultation needed

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