In summary: Disappointing budget, but Eskom support done in a positive manner.
• Negatives: higher deficit and debt ratio’s; upward revision in expenditure ceiling; increased tax burden for individuals.
• Positives: Strong statement on SOE’s and no Eskom debt take-on; reduction in public sector wage bill; continued emphasis on private sector’s important role and Strategic Equity Partnerships.
- Upward revision to budget deficit targets and debt ratio.
- Budget has mostly been drawn up around Eskom’s needs.
- Unexpectedly strong statement on envisaged savings in public sector wage bill.
- R15bn increase in tax burden for individuals.
- No corporate tax changes.
View complete summary of the 2019 budget: https://fiscal.co.za/wp-content/uploads/2019/02/2019-Budget-Commentary.pdf