'Gigaba will have to bridge a roughly R40 billion shortfall in revenue'

Economist Dr Goolam Balim says Finance Minister Malusi Gigaba will face a grueling challenge with the mid-term budget set to be delivered in Parliament on Wednesday afternoon.

Gigaba will have to explain how he intends dealing with rising government debt and avoid ratings downgrades.

He will at the minimum attempt to bridge a roughly R40 billion shortfall in terms of revenue and the mere implications of that suggest that the propensity for South Africa to face further downgrades is real. His challenge is one that certainly previous finance minister's would not have had to face in terms of the depth of occasion.

Dr Goolam Balim, economist at Standard Bank

Balim says dwindling tax payments are only some of the financial constraints government is facing.

In an environment of weak growth, there is naturally a subsidence in tax payments. These have all been falling short off target. In addition to that, there does appear to be some inefficiencies that have crept into the Sars operating systems...

Dr Goolam Balim, economist at Standard Bank

Meanwhile the Small Business Institute (SBI) says tax should not be used as a 'sledgehammer' to fix anything.

The fact is government is broke, and certainly, we can't afford small business and all these people at this stage to be used as a cash cow somehow to fund grandiose schemes like saving SAA or fixing Eskom.

Cobus Bester , SBI national spokesperson

Click on the link below to listen to the full audio....


This article first appeared on 702 : 'Gigaba will have to bridge a roughly R40 billion shortfall in revenue'


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
Wits Nehawu members down tools over salaries

Wits Nehawu members down tools over salaries

Nehawu Wits acting secretary Tumisho Madihlaba says negotiations with management deadlocked resulting in a strike.

Former Eskom interim CEO Sean Maritz under fire for signing off R400 mil payment

Former Eskom interim CEO Sean Maritz under fire for signing off R400 mil payment

‘Documents show that the fee contract was entered into by Anoj Singh & signed off by the acting CEO Sean Maritz' - Chris Yelland

‘Qedani Mahlangu helped people die then she ran away’ – Stephen Grootes

‘Qedani Mahlangu helped people die then she ran away’ – Stephen Grootes

Stephan Grootes shares his views on the events that unfolded at Life Esidimini and comments on Qedani Mahlangu’s apology.

EFF: Gigaba will consolidate all the kleptocratic aims of the Gupta-Zuma clique

EFF: Gigaba will consolidate all the kleptocratic aims of the Gupta-Zuma clique

EFF's Mbuyiseni Ndlozi says they will be listening to Gigaba's mid-term budget speech with a lot of 'despondency'.

Gigaba needs to bridge "trust deficit" and Zuma dodges Madonsela report: Brown

Gigaba needs to bridge "trust deficit" and Zuma dodges Madonsela report: Brown

Finance Minister Malusi Gigaba will present his first medium term budget policy statement in Parliament on Wednesday.

What to expect from Malusi Gigaba’s Medium Term Budget Policy Statement

What to expect from Malusi Gigaba’s Medium Term Budget Policy Statement

The Money Show’s Bruce Whitfield interviews Investec Asset Management Economist Nazmeera Moola.

Popular articles
Why many couples today are struggling with marriage

Why many couples today are struggling with marriage

Dr Eve advises that many modern couples need marriage to be a safe space for self-expression and self-actualisation.

The Big Pet Problem: Are you struggling to rent because you have pets?

The Big Pet Problem: Are you struggling to rent because you have pets?

Frustrated tenants say they're being discriminated against by landlords.

'The NPA should be ready and re-enroll the matter' - Nel on Malema prosecution

'The NPA should be ready and re-enroll the matter' - Nel on Malema prosecution

AfriForum not backing down over decision to privately prosecute Julius Malema.

Ed Dept scraps supplementary exams for matriculants

Ed Dept scraps supplementary exams for matriculants

The Department of Basic Education has announced it will do away with matric supplementary exams from 2019.

Cape Town not out the woods yet even with recent rainfall

Cape Town not out the woods yet even with recent rainfall

Climate expert, Piotr Wolski, says the city will know towards the end of May whether 2018 is a good or bad year.

This is how much you should be paying your domestic worker

This is how much you should be paying your domestic worker

Stephen Rathai, director of employment standards at the Department of Labour talks on the new national minimum wage.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

Mugg & Bean agrees to pay medical bill of customer

Mugg & Bean agrees to pay medical bill of customer

Mugg & Bean has agreed to pay for customers medical bills after a month of being in pain and pestering the chain to pay the bill.