B2B Central

Budget2018

01 Mar 2018

Budget ticks all boxes to avoid a Moody's downgrade

By Janice Roberts

Last week Malusi Gigaba, then still Finance Minister, delivered a balanced budget, signalling a return to fiscal consolidation. The Budget targets a debt-to-GDP ratio of 56.2% by 2021, which represents a significant reduction in the debt-to-GDP ratio targeted in the Medium Term Budget Policy Statement last October.
21 Feb 2018

BUDGET 2018: COMMENT - National Budget geared to instill confidence

By Janice Roberts

Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
21 Feb 2018

BUDGET 2018 COMMENT: Slow return to path of fiscal consolidation

By Janice Roberts

By Craig Pheiffer, Chief Investment Strategist; Absa Stockbrokers & Portfolio Management.  Bonds rallied and the rand strengthened as minister Gigaba announced a return to the path of fiscal consolidation. The budget deficit  of 4.3% of GDP forecast for the 2017/18 fiscal year was left unchanged as expected, but the 3.9%  deficit forecast for the next...
20 Feb 2018

Budget 2018: Beware of focusing on the symptoms

By Janice Roberts

By Sanlam Investments Economist, Arthur Kamp. Despite years of tax hikes and expenditure cuts, the Budget deficit remains wide and the government’s debt ratio continues to rise. Fiscal consolidation has not worked. Why?
20 Feb 2018

Budget preview: ‘Least bad’ option for SA is VAT hike

By Janice Roberts

By Nazmeera Moola, co-Head of Fixed Income, Investec Asset Management. After the euphoria of President Ramaphosa’s SONA, the 2018 Budget speech due tomorrow will bring South Africa down to earth with a bit of a bump.  The President said that hard choices will be needed – but making hard choices in five days is a...
19 Feb 2018

Agri SA’s Expectations for the 2018 Budget Speech

By Janice Roberts

The tabling of the annual national budget speech has proven to be one of the most anticipated events in South Africa. Along with the positive changes that are currently taking place in the political landscape, the February 2018 budget speech is set to attract not only the attention of business and individuals inside the borders...
19 Feb 2018

National Budget Speech 2018 – a difficult balancing act for Minister of Finance

By Janice Roberts

By Ruaan van Eeden, Head of Tax and Exchange Control at the Geneva Management Group. The National Budget Speech on 21 February this year is likely to attract more interest than it has on many occasions previously. South Africans have become accustomed to a National Budget characterised by inevitable increases in the so-called ‘sin taxes’...
19 Feb 2018

Will Ramaphosa be the turning point South Africa needs?

By Janice Roberts

By Tumisho Grater, economic strategist, Novare. After much anticipation, ultimatums and postponements, South Africa survived a very eventful and challenging week. The newly sworn-in President, Cyril Ramaphosa, took to the podium for his first State of the Nation Address (SONA) on Friday night and the change in leadership introduced a sense of renewed hope in the future...
16 Feb 2018

Treasury's options for recovery are running out

By Janice Roberts

Treasury will need to think outside the box this year if it is to make any meaningful difference to its current revenue shortfall, estimated to stand at around R50.8 billion. This is according to David French, Tax Consulting Director at Mazars, who says that, ahead of the 2018 Budget Speech, Treasury’s options to raise revenue...
14 Feb 2018

Budget 2018: Anticipated VAT shocks - another blow to an already bruised taxpayer

By Janice Roberts

By Hermann Marais, associate, Tax practice at Bowmans. Potential VAT increases have been discussed for several years, despite being politically sensitive. The urgency for an increase in the VAT rate escalated towards the end of 2017 when Finance Minister Malusi Gigaba announced in the Medium Term Budget Policy Statement that there would be a ZAR 50.8...
14 Feb 2018

Budget 2018: Treasury faces biggest challenge yet

By Janice Roberts

The National Treasury has never before had such a big challenge as it does this year in having to plug a seemingly continuously growing funding gap in its Budget vote later this month, from a shrinking pool of resources. It may be left with little choice but to squeeze the trusty ‘golden goose’ even further.