Finance Minister Pravin Gordhan announced that the revenue has lagged behind the economy, leading to a R30 billion shortfall.
The Minister announced several tax changes to deal with the shortfall.
Deputy Finance Minister Mcebisi Jonas spoke to Xolani Gwala about the 2017 budget speech delivered in Parliament on Wednesday.
Jonas explains that the revenue shortly is largely as a result of slow economic growth, but says challenges in the tax administration system could also be another factor.
Gordhan also said government will implement policies to implement economic transformation.
Danger in the discussion at the moment is that you counterpose transformation with growth. We believe that it's not either or.— Mcebisi Jonas, Deputy Finance Minister
We have got to grow the economy in such a way that we begin to transform it. And transformation without growth is equally problematic because you have nothing to redistribute.— Mcebisi Jonas, Deputy Finance Minister
We must be careful that we take it beyond sloganeering and look at the substance of what we are talking about.— Mcebisi Jonas, Deputy Finance Minister
Listen to Deputy Finance Minister below explaining how economic growth and transformation largely depend on education...