#MTBPS2018 'SA's economic environment limited the number of policy choices'
Independent Economist Ndumiso Hadebe says a no growth environment and a constrained fiscal budget are some of the issues that have limited the number of policy choices available to Finance Minster Tito Mboweni.
Mboweni delivered his mid-term budget policy statement on Wednesday, announcing a zero VAT on three more items from next April – white bread flour, cake flour and sanitary pads that will result in a R1.2 billion loss to the fiscus. He has also promised to hold off on any further tax hikes.
To the disappointment of some South Africans, the minister has endorsed the e-tolls system, saying the public should adopt a “user-must-pay” mentality.
Hadebe says this may be another revenue generator for the fiscus.
We would hope to understand more around the legislation around the e-tolls. There is nothing really that legally binds motorist to the payment of e-tolls.Ndumiso Hadebe, Independent Economist
Hadebe says this was a very difficult budget.
One of the key numbers that also came out was the revenue shortfall in the medium term. We are now at a R48 billion shortfall that we are looking at in the 2019/2020 financial calendar.Ndumiso Hadebe, Independent Economist
Given the expenditure side, the need for public spending and developmental needs as a consequence, that speaks to the constrained fiscal policy choices that were available.Ndumiso Hadebe, Independent Economist
What it does certainly speak to is that in the medium term, it is going to take quite active steps to really consolidate on our debt but I think the horizon post medium term is quite promising for South Africa.Ndumiso Hadebe, Independent Economist
Click on the link below to listen to the full analysis...
United Democratic Movement leader Bantu Holomisa has proposed that there be an interim government.Read More
The president is expected to address the nation on developments in SA's risk-adjusted strategy to manage the spread of COVID-19Read More
EWN reporter Theto Mahlakoana gives an update of a commemorative webinar dedicated to miners who died in Marikana.Read More
The Money Show's Bruce Whitfield interviews Kevin Lings, chief economist at Stanlib Asset Management.Read More
News24 parliamentary reporter Jan Gerber reflects on the court case between Busisiwe Mkhwebane and the National Assembly.Read More
Since it launched in May, the scheme's helped only 6.6% of businesses it targets. Will recent changes lead to improvement?Read More
The Money Show's Bruce Whitfield interviews Eskom's Linda Mateza about the once-off payment to its pensioners.Read More
Lungisa Fuzile (former National Treasury DG) tore into former minister Des van Rooyen's performance and choice of advisers.Read More
The former Cabinet minister, during his testimony on Tuesday at the state capture inquiry, accused the former Public Protector of making findings against him without giving him an opportunity to answer.Read More
EWN reporter Nthakoana Ngatane gives an update on what is happening at the state capture commission.Read More