Deputy finance minister warns of wage freeze, 'looming fiscal crisis'

[thestaggy]

R1.2bn a week to meet expenses?!?

F-me, you don't solve that with wage freezes sir, you solve it with deep cutbacks and mass retrenchments at a bare minimum.

That's a firm ''No'' from the unions, comrade.

 

[Scooby_Doo]

inflation has not been through the roof, so most of that 100% growth is "real" over a period of 10 years, meaning that revenue effectively doubled. In the finance world thats a big move whichever way you cut it.

we can talk counterfactuals all day, once again meaningless, projections are not exactly science or facts in this context- in my view they are closer to thumb sucks

Highly disagree. Inflation is a huge factor. If we averaged 4% inflation over the last 10 years (far lower than it actually was) 1 trillion is only worth 558million in 2009 money. Not to mention the 50 drop in the value of the rand.

So in dollar terms we are much poorer. And apples with apples we have less tax money in dollar terms.

 

[saturnz]

Highly disagree. Inflation is a huge factor. If we averaged 4% inflation over the last 10 years (far lower than it actually was) 1 trillion is only worth 558million in 2009 money. Not to mention the 50 drop in the value of the rand.

So in dollar terms we are much poorer. And apples with apples we have less tax money in dollar terms.

I didn't think that through, I was doing numbers in my head, let me run the numbers and get back to you.

However its also pointless to convert to dollar terms, that opens another can of worms.

 

[saturnz]

okay you are right there is not much real growth, but this is still consistent, because there has been not much real growth in GDP, this is what I was trying to bring accross

the real ratio that is relevant here is tax to GDP, and the data shows

The tax-to-GDP ratio in South Africa has increased since 2000, when it was 22.4%.

it is now closer to 29%, once again a real increase

 

[Brenden_E]

okay you are right there is not much real growth, but this is still consistent, because there has been not much real growth in GDP, this is what I was trying to bring accross

the real ratio that is relevant here is tax to GDP, and the data shows



it is now closer to 29%, once again a real increase

29% growth is joke considering the vast time peroid. It is really low.
Just the capital expenditure on infrastructure alone on a growing population I would venture would eat up more than that.

 

[BBSA]

People who are in bed with the unions will never freeze state wage.

 

[rietrot]

inflation has not been through the roof, so most of that 100% growth is "real" over a period of 10 years, meaning that revenue effectively doubled. In the finance world thats a big move whichever way you cut it.

we can talk counterfactuals all day, once again meaningless, projections are not exactly science or facts in this context- in my view they are closer to thumb sucks

Telling statist that the government is collecting to much tax... It's pointless.
Doesn't matter that the government is corrupt, inefficient and basically useless their brains just can not even grasp the idea of too much tax. Let alone that taxation is theft.

 

[saturnz]

29% growth is joke considering the vast time peroid. It is really low.

can't you read? a real ratio growing from 22 to 29% is huge within this context

 

[saturnz]

their brains just can not even grasp the idea of too much tax. Let alone that taxation is theft.

and some on this forum too

 

[3WA]

29% growth is joke considering the vast time peroid. It is really low.

Hang on, what? You want to be taxed more???

 

[surface]

IMO, some people need to change lifestyle. Most prospective tenants (some government teachers nogal) I see these days have fancy cars and once they submit applications and go through credit check, you realize that they are literally living hand to mouth to support cars they can barely afford. Too many clothing accounts as well.

 

[3WA]

IMO, some people need to change lifestyle. Most prospective tenants (some government teachers nogal) I see these days have fancy cars and once they submit applications and go through credit check, you realize that they are literally living hand to mouth to support cars they can barely afford. Too many clothing accounts as well.

Fine for government teachers. They ain't losing their job any time soon.

 

[Mista_Mobsta]

IMO, some people need to change lifestyle. Most prospective tenants (some government teachers nogal) I see these days have fancy cars and once they submit applications and go through credit check, you realize that they are literally living hand to mouth to support cars they can barely afford. Too many clothing accounts as well.

Unfortunately this happens across numerous cultures and fields in SA today. In the finance world, from interactions with clients/managers/market participants etc, young people <35years old, rather live in a rented townhouse or apartment and drive a fancy new german car or bakkie, than try to build up a proper asset base. Majority of them believe one RA/pension fund is enough savings.

The spend and live flash lifestyle culture is very ingrained in our youth.

 

[pb41]

This is what happens when you take your fragile tax base for granted and treat it with hostility and contempt instead of nurturing, growing and protecting it. In finance there is always a consequence to what you do or don't do.

 

[Mista_Mobsta]

No Fiscal Crisis For The ANC

Ahhhh the smell of fresh corruption in the morning...

 

[Thor]

What do you do when you face a budget crisis?

You lower costs.

Fire the ghost workers and friends on the ANC payroll.

Jail every person associated with corruption in state capture (Zuma still walks freely and the Guptas too.)

Only then will you be able to control your spending.

 

[Brenden_E]

can't you read? a real ratio growing from 22 to 29% is huge within this context

How much did the population grow in that period - how much did infrastructure expenditure increase? Can't you read?

 

[Temujin]

Theft and bails outs... blames low economic growth for empty coffers

 

[saturnz]

How much did the population grow in that period - how much did infrastructure expenditure increas? Can't you read?

post your numbers, rhetoric doesn't make evidence

 

[Gaz{M}]

How much did the population grow in that period - how much did infrastructure expenditure increase? Can't you read?

What infrastructure? Are you kidding? Perhaps 5% of tax money is spent on infrastructure. The rest is all wasted on one off expenses and salaries.