5 reasons why “faulty” and “flawed” Budget 2015 will harm the SA economy

“This year’s budget is very much a destructive one,” warns Investment Solutions Chief Economist Chris Hart. “If I had to give it a score I’d give it one out of ten.”

Hart call Budget 2015 “faulty” and “flawed” and gives the following five reasons why he thinks it’ll do serious harm to the economy:

  1. We need growth. This is supported by tax cuts not hikes.

  2. Tax hikes reduce our ability to save. Savings are an essential resource to support investment.

  3. Tax on capital formation is like eating seeds, and then wondering why there is no harvest.

  4. Expenditure does not reflect that we are in a tight spot and is growing faster than inflation or the GDP growth rate.

  5. The anti-growth stance of the budget means problems will deepen going forward.

Listen to the audio for more detail.


This article first appeared on 702 : 5 reasons why “faulty” and “flawed” Budget 2015 will harm the SA economy


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Did the Budget Speech make cents to you?

Did the Budget Speech make cents to you?

Bruce Whitfield speaks to Finance Minister Nhlanhla Nene after his first budget speech before Parliament.

2015 Budget numbers in a nutshell

2015 Budget numbers in a nutshell

EWN helps you understand the facts & figures from the Finance Minister's 2015 Budget Speech.

Tax free savings accounts 101 (and why they’re NOT what they’re made out to be)

Tax free savings accounts 101 (and why they’re NOT what they’re made out to be)

Minister Nene formally introduced tax-free savings earlier this year. Financial Planner Gregg Sneddon's wide-ranging discussion...

Budget 2015 - The Speech

Budget 2015 - The Speech

Finance Minster Nhlanhla Nene will deliver his budget speech at 2pm. South Africa needs more revenue; how will it be raised?

How to maximise the benefits offered by Tax Free Savings Accounts

How to maximise the benefits offered by Tax Free Savings Accounts

Tax Free Savings Accounts can be powerful wealth creators, if you use them right. Here's how...

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! On 1 March 2015 government introduces tax free savings accounts. Financial planner Claude Hannah explains…

Popular articles
[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

[LISTEN] Zille responds to Lindiwe Mazibuko comments that she undermined her

Helen Zille responds to alleged comments made by Lindiwe Mazibuko at a dinner, saying she's doing the same to Musi Maimane.

[WATCH] Melania Trump's reaction after shaking Putin's hand

[WATCH] Melania Trump's reaction after shaking Putin's hand

Waitress praised for standing up for herself after a man touched her butt on his way to the toilet and a dog comforts its owner.

Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

Tell me what you want: Study reveals most common sexual fantasies

Tell me what you want: Study reveals most common sexual fantasies

What are your sexual fantasies? Disclosure can bring sexual freedom, but it can also have downsides. A study lists the top trends.

More arrests are imminent in connection with the cash-in-transit heists - Hawks

More arrests are imminent in connection with the cash-in-transit heists - Hawks

Seven suspects were arrested in Limpopo in less than 24 hours after a cash-in-transit vehicle was blown up in the province.