Reducing unemployment, inequality and eliminating poverty are likely to the central themes of the 2013 budget. These inferences are drawn from the State of the Nation address and the National Development Plan by Investec’s Chief economist Annabel Bishop.
Bishop says social welfare and education are likely to remain the core focus of expenditure in 2013 and in future budgets.
When Finance Minister Pravin Gordhan announces the national budget, there will be recognition that revenue levels are not at the same level as expenditure.
It is said that government should make sure there are no additional growths in expenditure in civil servants wages and social welfare growth.
Bishop says the focus should be placed on the production side of the economy to stimulate growth.
Government is also expected to take steps to address the concerns of rating agencies and foreign investors, following recent downgrades.
Government is also advised to encourage making it easy to do business to create jobs and increase the tax base
Bishop says no major announcements are expected when it comes to individual and corporate tax,
It’s expected that government will announce a review of taxation this year.
– By Glorious Sefako
