With so much money available it is a good news budget with huge amounts of money going to be spent on education, crime and infrastructure. The FF Plus welcomes it.
The problem is that this is the seventh year of continued growth and of this kind of good news budget without the results being visible on ground level. Somewhere there is a hole in the dam which causes that the good news which is announced in Parliament do not always filter through to ground level. The capacity problem of the provinces and local management at present places a
definite restriction on the capability of the government to make use in full of the continued growth.
It is very important that the country in years of growth uses its surplus for capital projects which in more difficult years will help to stimulate tax incomes. Against this backdrop it is important that the billions of rands which has been budgeted for the 2010 Soccer World Cup, is created in a practical manner and will still be available at the time of the tournament.
The FF Plus has for a number of years been asking that tax on pension funds be abolished as it is an extra burden on the finances of people who try and provide for their retirement. The FF Plus welcomes the fact that the minister has listened to our request by abolishing this tax.
The compulsory pension tax can be positive if it is applied practical and sensibly. The detail will however determine to what extent this tax is going to succeed in helping people to save for their retirement.
The increased tax on fuel will have an influence on inflation and is unnecessary in a time when the government has secured more than enough revenue.
