Finance Minister Malusi Gigaba will face a tough time when he delivers the budget speech on Wednesday as it comes amid a growing budget deficit and against the backdrop of slow economic growth.
Chairperson of the Standing Committee on Finance Yunis Carrim says they’re concerned about where Gigaba is going to get additional revenue to fund social services.
Among other things Gigaba is expected to outline how free tertiary education and other major government projects will be funded.
Carrim says, “We are all concerned about where the additional revenue is going to come – and concerns about the relative value of increasing VAT as against personal income tax and customs and income excise duties, I think that will be the key thing where the money is going to come from for free education for those who are needy, and for national health and other major projects of government.”
