In the past few years we haven’t been sure who would present our budget speech let alone predict what was to be presented! While there are huge expectations that Minister Mboweni’s maiden full budget speech will deliver answers to all our problems, political and financial constraints will come into play. So, what are some of the key issues:
Economic Stimulus
Every political party is lobbying for support on the basis that they will provide the economic growth required to provide jobs and a better life for all. The reality is that Treasury has little room to play with and it will be interesting to see what is tabled.
Election Year
Elections are scheduled for the 8th May 2019. We can’t expect the government to table a budget that in any way impinges on the poor, who represent the majority of voters in SA. So, VAT hikes are unlikely, while some basic food stuffs may well be zero rated.
It is an ideal opportunity to increase taxes on the wealthy, so while there appears to be little room for more taxes to be levied let’s see what the budget brings.
Eskom
Eskom is in serious trouble, we are experiencing that on a daily basis. So, while President Ramaphosa has put a plan of sorts on the table, big money needs to come from somewhere. Is government going to borrow more, or will taxes be raised for further bailouts.
Minister Mboweni will table his Budget on the 20th of February. We will review his proposals and keep you informed of any issues that may affect you.
DISCLAIMER: The material and information contained in this article is for general information purposes only. You should not rely upon the material or information in this article as the basis for making any business, legal or other decisions.