Economist & Founder at Nascence Advisory Xhanti Payi says while the 2018 budget has been well executed, there is concern that the R57 billion that will be spent to phase in fee-free higher education is not sustainable.
Finance Minister Malusi Gigaba has announced a 1 percentage point increase in value-added tax (VAT) and an R85 billion cut in government spending over the next three years.
By and large, they have done what many people expected. I think shortcomings here and there in terms of the question of education and how sustainable the R57 billion will be in terms of how big our youth is, but in general terms, the minister delivered quite well.— Xhanti Payi, Economist & Founder at Nascence Advisory
The fuel levy is also set to rise by 52 cents a litre.
Payi says there may be some relief if the rand strengthens.
Hopefully the stronger rand over time and stability of the oil price itself will shield us a little bit from this increase but of course, as things start to escalate again we are probably going to feel it.— Xhanti Payi, Economist & Founder at Nascence Advisory
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