2020 Budget Speech as always solicited various responses.
CAPE TOWN- Following reports VAT would be increased the minister of finance Tito Mboweni, who seemed relaxed owing to declining economy, made no mention of it.
Instead he mentioned projected revenue:
Projected expenditure: R1.95 trillion
Budget deficit: R370.5 billion
Gross national debt: R3.56 trillion (65.6% of GDP)
Over 18 months or so, Mboweni spoke about several “jump starts” our stalling economy would get:
- The fruits of the reform agenda led by President Cyril Ramaphosa
- Lower inflation
- The interest rate reduction from earlier this year
- The recent gains in platinum group metals prices
- The impending change to the electricity regulatory framework
- The tax proposals set out in the 2020 Budget Speech
He also mentioned priority projects that would help stimulate youth employment, creation of projects and the funding thereof.
Tourism, agriculture and other departments will be prioritised.
The controversial ‘Sin taxes’ saw large increases on:
- 340ml can of beer or cider to cost an extra 8c
- 750ml bottle of wine will cost an extra 14c
- 750ml bottle of sparkling wine an extra 61c
- Bottle of 750 ml spirits, including whisky, gin or vodka, will rise by R2.89
- Packet of 20 cigarettes will be an extra 74c
- 25 gram of piped tobacco will cost 40c more
On the SAA saga Mboweni says Government allocated R16.4 billion for guaranteed debt and interest.
Prasa, Eskom and other SOEs will be prioritised as well, though no mention of controversial e-toll was made.
Labour union Cosatu is not impressed with the budget stating its ‘feeble’.
Prior to his Budget tabling, civic organisations were marching peacefully outside the Parliament, some confessing to this reporter, (in the company of their kids) they wanted a ‘word’ with Mboweni to accept a memorandum detailing their concerns such wage increment, labour issues and abuse by their employers amongst others.
Image (Cooled off. Finance Minister Tito Mboweni after delivering his ‘troublesome’ Budget Speech in Parliament today).