MyMoney Online

From the horse’s mouth: Minister Nene unpacks yesterday’s “mini budget” speech

Tax hikes are looming

"We’ve laid out our plans for cutting expenditure – R10-billion now and another R15-billion in the following year - and in February we’ll lay out plans for increasing revenue,” said an ominous sounding Nene when pushed on whether tax hikes are imminent.

In Nene’s speech on Wednesday he promised not to balance the budget on the backs of the poor; a statement considered by some to signify imminent tax hikes. “We’ll be looking at increasing efficiencies in collecting so as to close the tax gap, but we’ll also have to make adjustments to tax policy in order to increase revenue,” warned Nene.

Civil service salary expectations need moderation

The civil service isn’t, according to Nene, productive enough in delivering social returns. “We must ensure that the money we put in buys us what we need,” says Nene.

The Finance Minister warns that Government simply cannot afford civil servant salary adjustments far above inflation. “It is in the interest of everyone in South Africa to make sure that we are alive to the environment we operate in,” says Nene. “Only when we’re on a path of much faster, sustainable growth will we be able to spend more on the civil service.”

Wasteful expenditure and corruption still not under control

“We are stepping up the cost containment measures of my predecessor,” promises Nene. “These measures have, in the past eight months, saved about R500-million. Having said that, we haven’t been able to completely stem the tide and we need to do a lot more.”

Size of the Cabinet

“If government is doing a good job then I imagine South Africans will be quite content,” says Nene when pushed on the size and cost of Cabinet. “However, it’s not my prerogative to determine how large Government should be.”

Privatisation

“We’re embarking on a review of state-owned enterprises,” says Nene. “The outcome of that review will inform us on what course of action to pursue.”

Pension fund reforms

“For our intervention to succeed we need the buy in of all affected parties,” says Nene when asked if Government isn’t being held to ransom by trade unions which have succeeded to put much needed pension fund reforms on the backburner.

Listen to the Soundcloud clip for more detail.

What others say

Bloomberg parliamentary journalist Mike Cohen discusses the five most important things you should know about Wednesday’s ‘mini-budget’:

FNB Chief Economist Sizwe Nxedlana unpacks Finance Minister Nene’s mid-term budget policy statement:

Konrad Reuss, Managing Director of Standard & Poor's in Johannesburg, weighs in on the medium term budget policy statement:

Tax Expert and Professor at Rhodes University Professor Matthew Lester shares his views on Finance Minister Nhlanhla Nene’s first mini-budget:

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Where to invest money you intend to leave to your kids

Where to invest money you intend to leave to your kids

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

How to survive retrenchment

How to survive retrenchment

Your rights (and their responsibilities) upon retrenchment. Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

3 shares that'll bring home the bacon

3 shares that'll bring home the bacon

The Money Show’s Bruce Whitfield interviews Overberg Asset Management analyst Kirk Swart.

The best investment on the JSE right now and one from abroad (by Anchor Capital)

The best investment on the JSE right now and one from abroad (by Anchor Capital)

Bruce Whitfield interviews Anchor Capital Aggressive Long Short Fund Portfolio Manager Liam Hechter for his “stock picks” feature.

You’re wrong if you think you (or anybody else) can time the market

You’re wrong if you think you (or anybody else) can time the market

Don’t even try, because inflation will eat you for lunch, says personal financial advisor Warren Ingram.

How the “Mini Budget” affects YOU: an uninterested person’s guide

How the “Mini Budget” affects YOU: an uninterested person’s guide

Most people find the “Mini Budget” boring. These are the parts that will directly affect you and your pocketbook.

Popular articles
Why the PAC wants South Africa renamed Azania

Why the PAC wants South Africa renamed Azania

Pan Africanist Congress's Narius Moloto explains why it supports the name Azania, a word which he says has Arabic origins.

Opinion:  Bishop Lekganyane is right

Opinion: Bishop Lekganyane is right

Stephen Grootes weighs in on comments made by the Zion Christian Church Bishop at the weekend.

Getting to know MP, Dr Makhosi Khoza

Getting to know MP, Dr Makhosi Khoza

Dr Khoza is admired by South Africans for her role in the SABC inquiry as a ANC member of parliament.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

How to make your first million

How to make your first million

Warren Ingram discusses his new book in which he shares practical ways for ordinary people to achieve financial freedom.

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Michiel le Roux speaks about the fascinating story behind the little bank that has the Big 4 shaking in their boots.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?