Mini budget in a nutshell

Vox Populi Vox Dei

Vox Populi Vox Dei

High Tory
Joined
Mar 6, 2004
Messages
53,767
Reaction score
38,627
Location
Cape Town
What the numbers reveal

  • Economic growth revised downwards from 1.5% to 0.7% for 2018.
  • Consolidated budget deficit for 2018/19 revised to 4% of GDP (from 3.6%).
  • After rising to 4.2% of GDP in 2019/20, it is expected to stabilise at 4% in outer years.
  • Gross debt to stabilise at 59.6% of GDP in 2023/24 (February budget projection was 56.2% of GDP in 2021/22).
  • Tax revenue for 2018/19 projected to fall R27.4 billion short of February estimate due to Vat refund backlog, underestimation of refunds and slower corporate income tax collections.
  • Expenditure ceiling to be maintained and set to grow at 1.5% in 2021/22.

Tax outlook

  • No increases in personal income or corporates income tax rates or Vat expected, but personal income tax brackets, levies and excise duties to be adjusted for inflation.
  • White bread flour, cake flour and sanitary pads to be zero-rated from April 1, 2019 at an estimated cost of R1.2 billion.
  • Reforms under way at Sars to regularise Vat refund payments and rebuild capacity (reprioritisation of R1.4 billion of budget).
  • Implementation of carbon tax postponed from January 1 to June 1, 2019.

Expenditure

  • Public service wage agreement exceeds budgeted baselines by R30.2 billion over medium term. No additional money allocated, national and provincial departments to absorb costs within compensation baselines.
  • Around 85% of increase in wage bill due to higher wages, rather than higher head count.
  • SAA to receive R5 billion through special appropriation bill to settle debt redeeming between now and March 2019. This will help prevent call on airline’s outstanding government-debt of R16.4 billion.
  • SA Post Office receives R2.9 billion to reduce debt levels.
  • Sanral receives R5.8 billion to compensate for non-payment of e-tolls, of which R3 billion is an additional allocation.
  • Reprioritisation of R350 million to recruit more than 2 000 health professionals into public health facilities.

Mboweni comments

  • Minister says reconfiguration of SOEs required; parties should be “open-minded” and consider equity partner or close of certain business activities in SAA stable.
  • New way of thinking required regarding public sector wage bill. Represents about 36% of budget, “sweet spot” is below 30%; public officials must also show restraint.
  • Size of cabinet the prerogative of president, but should preferably not be more than 25, probably 20
  • Beneficial to involve private partners in health sector.
  • Stabilisation of gross debt to GDP ratio close to 60% not a good development, “sweet spot” is below 50%.
Click to expand...
https://www.moneyweb.co.za/in-depth...141225525&mc_cid=ef3df28d95&mc_eid=0a1fd237f7
 
Every single point is a negative / deterioration from a ratings agency perspective. Will Moody's finally grow a pair and junk us despite all the bribes we must have paid them to ignore the elephant in the room for this long?
 
Size of cabinet the prerogative of president, but should preferably not be more than 25, probably 20
Click to expand...

Hmmm...of course this is what Prez Ramaphosa promised. Let's see if his bosses in the ANC will allow it.
 
daveza said:
Government says it will provide free sanitary pads to schools, immediately drops vat on sanitary pads.
Click to expand...

How will that work at the schools? As a dispenser (open to looting / poorly controlled) or pick up from the school nurse?

Sorry, I deviated from the OP.
 
More SOE bailouts ... filling up the troughs with TAXPAYERS money.

Fantastic ...
 
  • Tax revenue for 2018/19 projected to fall R27.4 billion short of February estimate due to Vat refund backlog, underestimation of refunds and slower corporate income tax collections.


  • Public service wage agreement exceeds budgeted baselines by R30.2 billion over medium term. No additional money allocated, national and provincial departments to absorb costs within compensation baselines.


What kind of dumbass can make these two statements and believe both to be true.
 
throwing billions at failing SOEs but only R350mil for improve health services :unsure:
Shows priorities are not the people but the gravy:mad:
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X