Budget 101 with Magnus Heystek

Hard-hitting investment strategist Magnus Heystek gave his insight into Enoch Godongwana’s first budget speech as finance minister. On a high-level basis, Heystek gives the finance minister the thumbs up. This doesn’t mean Heystek doesn’t have his doubts; as we’ve come to expect from the ruling party, promises are rarely delivered. The tax windfall was primarily a result of the commodity boom and the profits realised from the mining sector. The sustainability of these profits must be questioned, given the volatile nature of commodity prices. Eskom’s financial position has stabilised somewhat, despite an unsustainable debt burden that requires further action. All in all, it seems we are in a better position than we were a year ago. Yes, that’s coming off a low base but we are in the foundation phase of building economic prosperity in this country. The indicators seem to be turning, however slowly. Now is the time we need Treasury and government to deliver on their promises.  Learn more about your ad choices. Visit megaphone.fm/adchoices