Monday, 23 October 2017

Taxes, bailouts and political instability: Gigaba delivers inaugural MTBPS.

JOHANNESBURG - All eyes will be fixed on South African Finance Minister Malusi Gigaba this week when he delivers his first Medium-Term Budget Policy Statement (MTBPS) amid concerns about the fiscal challenges, widespread perceptions of government corruption and wasteful expenditure.

Gigaba, who took over the reigns of National Treasury following the controversial firing of Pravin Gordhan in April, will have his work cut out as he sets out the fiscal policy objectives and spending priorities over the three-year expenditure period.

The finance minister will have to pull a rabbit out of the hat on Wednesday in order rein in government's more than R2 trillion debt while allocating funding to higher education, social welfare, and infrastructure projects, including the controversial nuclear build.

The South African Revenue Services (Sars) is already under pressure with reports suggesting that it may not be able to meet this year's target. Projected tax income for the 2017-18 fiscal year is R1.41 trillions and the proposed expenditure R1.56 trillion.

Full story at IOL.

By Siphelele Dludla.

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