Ferdie Schneider provides a summary of the Medium Term Budget speech and what to expect from Budget 2015 using the MTBS as a foundation for analysis.
The budget speech is one of the most important events of the political year because it shows not only where government is spending its money, but where that money is coming from. The trouble is that South Africa’s tax base remains worryingly constrained.
Government needs to take bold decisions and implement tougher measures to get the economy to recover, the DA said on Wednesday.
Government must deal with tax evasion to help improve service delivery and ensure a bigger fiscus for the country, the EFF said following the mid-term budget speech on Wednesday.
South Africa slashed its 2014 growth expectations for the second time this year on Wednesday, with the Treasury forecasting expansion of just 1.4 percent as strikes, an electricity crunch and weak private investment take their toll.
South Africa will inject 20 billion rand ($1.82 billion) cash into struggling power utility Eskom, and may also convert its existing 60 billion rand subordinated loan to equity, the National Treasury said on Wednesday.
South Africa expects a slightly wider budget deficit of 4.1 percent of GDP for 2014/15 from the 4 percent seen in February, but will rein in spending and raise taxes to get the gap down to 2.5 percent in three years, the Treasury said on Wednesday.
Government will proceed with the sale of non-core assets, but this should not be read as a shift in policy towards privatisation, Finance Minister Nhlanhla Nene said on Wednesday.
Spending on post school education and training will grow faster than any other government programme over the next three years, says Finance Minister Nhlanhla Nene.