AUTHORS: ALTHEA SOOBYAH, ELMIEN THERON, ETIENNE LOUW, and ROBIN GALLOWAY
VAT increase watered-down; not much else to get excited about
Overall impression
ONE OF the biggest issues with the budget every year is that South Africa is not investing in growth-enhancing initiatives with a significant proportion of the budget going to paying off debt and social grants.
South Africa urgently needs to look at other ways to increase revenue other than relying on the tax base. At some point it will reach a saturation point.
Furthermore, there is no reining in of government spending. Consolidated spending is budgeted to increase at an annual above-inflation average of 5.6%, from R2.4 trillion in 2024/25 to R2.83 trillion in 2027/28.
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