Budget Predictions

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AnomalyNexus

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So tomorrow is budget day.

Short summary for those not in the loop:
  • Compared to last year, Gov spend has increased
  • Compared to last year, SARS collected less
  • So there is a huge hole in the budget (~R90bn) that has to be patched somehow
  • Most of spending can't be cut in practice (Interest payments, Social Grants etc)
  • Zuma already increased spending in his state of the nation speech (More social grants)
  • Both Transnet and Eskom plan to spend big in future
  • Tax base is already stretched to breaking point (<20% of population pretty much pay for everything)
  • So its either debt, further taxes or brutal cuts in the areas that can be cut without causing a revolution

The gov has painted itself into a corner here. Very curious what route the minister of finance is going to choose cause all the options available suck pretty hard.:o

Predictions?
 
Start taxing the rest of the damn country - even if only 5% of income - bet then they'll have some cash for at least two Mercs.
 
Increase in "sin" taxes.

Increase in the marginal tax rate from 40% to 42%.

Taxable amount on Car allowances reduced or scrapped.
 
They should legalise drugs - all forms, even the hardcore. Control the quality and tax it decently. That should bring in a lot of money. Use the money to get more police and prisons.
 
I reckon the gov will release more things to the local gov. Thereby balancing its own 'books' but leaving a shortfall for provinces to recover i.e. local gov will look bad due to their increases in tax rather than central?
 
Limit the procreation potential of those that can't afford it.

All people like to screw but not all people can deal with the consequences and even less can understand the consequences.

and I'm not talking about handing out condoms on the street corners.
 
An increase in petrol tax as well as personal tax. I figure the government isn't done squeazing the middle class.

I also expect to see them increase social grants.

Government will also start borrowing citing the global recession as an excuse.
 
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Government is about to create poverty if they don't stop hammering the low-middle to upper class.
 
Quite complaining Socialism FTW. :erm:

They need to clamp down on the rampant corruption, nepotism, cronyism and incompetence all the way down to local government. That would go a very long way to reducing the deficit. There is no other viable option. More taxes will just chase away productive members of society.
 
Alan said:
Quite complaining Socialism FTW. :erm:

They need to clamp down on the rampant corruption, nepotism, cronyism and incompetence all the way down to local government. That would go a very long way to reducing the deficit. There is no other viable option. More taxes will just chase away productive members of society.
Click to expand...

Uhm, no. They need to clamp down on the rampant corruption, nepotism, cronyism and incompetence all the way up from the local government.

Local ANC governance are insanely and embarassingly incompetent. The only reason the top brass of the ANC does nothing about it is because they see it as a necessary evil to achieve equality. What they don't realize is that this obsession with equality is going to destroy them someday.
 
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Picard said:
Limit the procreation potential of those that can't afford it.

All people like to screw but not all people can deal with the consequences and even less can understand the consequences.

and I'm not talking about handing out condoms on the street corners.
Click to expand...

I fully agree, it is almost always the poor who way too many children. Mandatory sterilization?
This country has way too many people.
 
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