South Africa faces fiscal reform challenges
Monday, February 19, 2024
Significance
However, there are question marks over his ability to deliver on the ambitious spending cuts needed as tax collection falls in a weak economy.
Impacts
- 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.
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