At a post-Budget briefing yesterday at FNB Portside in Cape Town, academics and economists outlined the extent of the problem facing SA as it seeks to fund the welfare state while trying to stimulate growth. This is not an easy task, and there is no indication as to where the job-creating growth will come from. Instead, we have taxation be stealth, as bracket creep (the failure to adjust income tax brackets for inflation) will net the government an additional R12,8 billion in the current year. There are some signs that government is getting serious about cutting spending, but not nearly aggressively enough.
The speakers included:
Dr Tania Ajam, School of Public Leadership, University of Stellenbosch
Mamello Matikinca-Ngwenya, chief economist – FNB
Busisiwe Radebe, economist – Nedbank
Janet Hugo, Financial Planner of the Year – Sterling Private Clients
Tim Harris, CEO Wesgro
Prof Jackie Arendse, head of department – Rhodes University.