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South Africa faces fiscal reform challenges

Content type:: Expert Briefings
Location:: SOUTH AFRICA
Keywords associated with this article:: Geographic: South Africa AF IMF-World Bank

Topical: economy politics debt fiscal reform industry election energy finance government hard commodities balance of payments growth corporate investment mining monetary public sector transport utilities
ISSN:: 2633-304X
Citation:: Oxford Analytica (2024), "South Africa faces fiscal reform challenges", Expert Briefings.
https://doi.org/10.1108/OXAN-DB285317

Monday, February 19, 2024

However, there are question marks over his ability to deliver on the ambitious spending cuts needed as tax collection falls in a weak economy.

A planned ZAR15bn of extra tax revenue is expected to come from increased income taxes and minor taxes, given resistance to increasing VAT.
The ANC is unlikely to give in to pressure for a universal basic income grant but the ‘social relief of distress’ grant will be extended.
Although the ANC has committed to a costly national health insurance scheme, it may avoid budgeting for this before elections.