Budget 2022 preview
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What do they say about statistics being like bikinis, conspicuous for what they conceal more than reveal?
One could argue the same thing about South Africa’s recent revenue windfall, which, to some, will paper over the cracks in SA’s fiscal position. But peel away that temporary largess and the facts are stark. We spend 12.7c of every rand collected in taxes on serving government’s ballooning debt. Along with over 33c paying government wages and another 20c on social grants. That leaves roughly 34 cents to spend on everything else. If this was your household and you were paying your children a fifth of your salary to live with you after school, a third of your salary on your household staff and borrowing to fund the monthly groceries and paying 12% of your salary to service your credit card, you’d be sent to debt counselling.
But more than that the country finds itself on the horns of a political dilemma hitherto unseen in the democratic era. Record unemployment, social unrest, and insurrection ride roughshod over confidence and the reform train while moving has yet to gather the required momentum to convince markets that South Africa is a welcome place for investment.
Let’s welcome our panel to preview the budget Mamello Matikinca, Chief Economist at FNB; Dr Miriam Altman, economist and professor of 4IR at UJ; Peter Attard Montalto, Head of Capital Markets Research and Intellidex & Mathew Parks, parliamentary coordinator for Cosatu
One could argue the same thing about South Africa’s recent revenue windfall, which, to some, will paper over the cracks in SA’s fiscal position. But peel away that temporary largess and the facts are stark. We spend 12.7c of every rand collected in taxes on serving government’s ballooning debt. Along with over 33c paying government wages and another 20c on social grants. That leaves roughly 34 cents to spend on everything else. If this was your household and you were paying your children a fifth of your salary to live with you after school, a third of your salary on your household staff and borrowing to fund the monthly groceries and paying 12% of your salary to service your credit card, you’d be sent to debt counselling.
But more than that the country finds itself on the horns of a political dilemma hitherto unseen in the democratic era. Record unemployment, social unrest, and insurrection ride roughshod over confidence and the reform train while moving has yet to gather the required momentum to convince markets that South Africa is a welcome place for investment.
Let’s welcome our panel to preview the budget Mamello Matikinca, Chief Economist at FNB; Dr Miriam Altman, economist and professor of 4IR at UJ; Peter Attard Montalto, Head of Capital Markets Research and Intellidex & Mathew Parks, parliamentary coordinator for Cosatu
