OPINION | Next week's Budget must weather a perfect storm | Business

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Will government try and spend its way to economic growth, or take further austerity measures? asks Nazrien Kader.

Against the backdrop of a state of disaster declared by President Cyril Ramaphosa, and as Minister of Finance Enoch Godongwana prepares to deliver his second National Budget on 22 February, speculation is rife as to the choices he will make.

Tax collections remain buoyant across all primary tax types which is a real indication of the sustainability of increased tax collections. The medium-term budget projected the net debt to GDP ratio to stabilise at around 68.5% of GDP over the next three years, which is a good break from the recent trend of an ever-increasing debt to GDP ratio.

Our legacy shows that slower economic growth is likely to initially manifest in slowing VAT collections as consumers struggle with higher inflation and higher interest rates.

 

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They will spend

Should read 'loot' its way..... CyrilRamaphosa

They'll steal more, lie more and divide more until they are stopped at the ballot. Till then it's smoke and mirrors.

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