Friday, February 27, 2015
South Africa's national budget.
Finance Minister Nhlanhla Nene on February 25 presented his maiden full budget address to parliament. The revenue shortfall for 2014/15 rose to 14.7 billion rand (1.28 billion dollars) from 12 billion rand expected in October 2014's mid-term statement. Nene focused on how to raise additional revenue and contan spending without stymying growth. However, he left key questions unanswered.
- Davis Tax Commission recommendations may result in more tax increases and new taxes in the 2016 budget.
- A special new fast-tracked, ten-year business visa for BRICS nationals could partly mitigate the impact of restrictive immigration rules.
- Maize shortages due to drought (the worst in eight years) may drive price hikes, reducing the effect of low oil prices on food inflation.