The National Budget 2017 was bound to walk a tightrope between stimulating the economy, appeasing the populace and showing fiscal prudence. It was, in the eyes of many, a transformative budget. Gordhan acknowledged the slow economic growth locally and the complex global environment. The budget set out to raise an additional R28 billion in taxes.
It was expected that the higher income earner’s pocket will be affected and a soft landing for the indigent in terms of inflationary increases in welfare grants and an increase in the threshold for transfer duty. Education was prioritised with the foundation phase in particular receiving over R240 billion, 17.5% of the total consolidated budget. As usual and expected, the tax on tobacco and alcohol has increased. The non-increase of the VAT rate was welcomed.
See articles related to the budget speech below and view our infographic for a quick snapshot of the key highlights.
Economist’s Budget Review 2017:
With very little room to manoeuvre, the National Treasury did the best it could to deliver a progressive budget that stays the course of fiscal consolidation, but also attempts to promote transformation and greater economic inclusion. Read more.
Budget 2017 Investment Implications
Budget 2017: More bond than equity friendly with the emphasis more on fiscal consolidation than growth (By Mark Appleton) Read more.