Streaming issues? Report here
Refilwe Moloto 2019 1500 BW
Breakfast with Refilwe Moloto
06:00 - 09:00
volume_up
volume_mute

Up Next: Today with Kieno Kammies
See full line-up
Breakfast with Refilwe Moloto
06:00 - 09:00
Home
arrow_forward
Politics
arrow_forward
Business

Will the budget be convincing enough for ratings agencies? Economists explain

20 February 2019 7:18 PM
Tags:
Tito Mboweni
SA 2019 budget
2019 budget speech
#Budget2019
Economist Xhanti Payi and Prof Osman Mollagee give their take on Minister Tito Mboweni's budget speech.

Economist and founder at Nascence Advisory Xhanti Payi says one of the key issues for South Africa is ensuring ratings agencies have confidence in the country's economy.

Finance Minister Tito Mboweni delivered his maiden budget speech on Wednesday with South Africa’s budget deficit expected to widen to 4.5 percent of gross domestic product in the 2019/20 fiscal year from 4.2 percent in 2018/19.

Payi says the deficit should be below 3% and this poses major problems.

It indicates whether or not we are going towards a place where we can actually afford our lifestyle as a nation. If you continue to spend above what you are earning, then you are continuously going down that path of not being able to support yourself at a stage later.

Xhanti Payi, Economist & Founder - Nascence Advisory

One of the key things that worried me a lot going into this budget was whether or not we could convince those ratings agencies, Moody's especially, that have been giving us a little bit of space to fix ourselves, to give them the confidence.

Xhanti Payi, Economist & Founder - Nascence Advisory

I am very interested to find out what Moody's has to say because I think that we are in major trouble if they are looking at this seriously and are not going to give us anymore chances than they already have.

Xhanti Payi, Economist & Founder - Nascence Advisory

Partner in Tax Service at PWC says Prof Osman Mollagee says an increase in the VAT rate will eventually come through.

The Sars has had to do a huge amount of catch up. More than half of the revenue collected from the increased VAT rate actually went into paying refunds.

Prof Osman Mollagee, Partner in Tax Service - PWC

The massive backlog of refunds that were held back for a long time in order for Sars to catch up took more than 15% of the extra VAT generated, he explains.

The other point is that the ability of the Sars to collect, that has come under the spotlight significantly. In my experience, the tide is turning but what we are seeing now is really, I think we are coming hopefully out of the worst of it.

Prof Osman Mollagee, Partner in Tax Service - PWC

Click on the link below to hear the full conversation...

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Will the budget be convincing enough for ratings agencies? Economists explain


20 February 2019 7:18 PM
Tags:
Tito Mboweni
SA 2019 budget
2019 budget speech
#Budget2019

More from Politics

saa-plane-ewnjpg

'If SAA meets our demands, we will be more than happy to call off strike'

14 November 2019 1:52 PM

Sacca president Zazi Nsibanyoni-Anyiam Mugambi says the airline needs to come to the party to avert the protest.

Share this:
Read More arrow_forward

SAA

'Unions are making a mistake. SAA is dying. It’s not Eskom – we don’t need it'

14 November 2019 9:02 AM

SAA is on its knees, cap in hand, asking taxpayers for R2 billion this month. Unions must be careful, warns Guy Leitch (SA Flyer).

Share this:
Read More arrow_forward

e-tolls

'If ANC continues to zig-zag on e-tolls it will be punished at polls'

13 November 2019 2:05 PM

Cosatu Gauteng provincial chairperson Amos Monyela says the federation is mobilising motorists to fight against the scheme.

Share this:
Read More arrow_forward

tornadojpg

KZN premier visits tornado-hit region, promises government support for families

13 November 2019 1:16 PM

Cogta MEC spokesperson Senzelwe Mzila says departments will assist the ravaged area after a tornado left 2 dead and many injured.

Share this:
Read More arrow_forward

SAA

We’ll shut you down! – unions to SAA ('overstaffed by any measure globally’)

13 November 2019 8:58 AM

The money-pit airline is fighting for its life. Bruce Whitfield interviews Theto Mahlakoana, a senior political reporter at EWN.

Share this:
Read More arrow_forward

191112-deputy-pp-interviewsjpg

Interviews for Deputy PP well underway

12 November 2019 1:34 PM

Eight candidates were nominated from a list of 19 individuals.

Share this:
Read More arrow_forward

saa-plane-ewnjpg

Unions and SAA at loggerheads over planned restructuring process

12 November 2019 1:32 PM

Numsa spokesperson Phakamile Hlubi-Majola and SAA interim chief financial officer Deon Fredericks discuss looming retrenchments.

Share this:
Read More arrow_forward

guptas-zumajpg

SIU describes practical process to recover R14.7 billion looted from state

12 November 2019 9:24 AM

Advocate Andy Mothibi Head of the Special Investigation Unit explains the actions being taken.

Share this:
Read More arrow_forward

191111-saldanha-arcelormittjpg

W Cape govt still hopes to avert ArcellorMittal closure in Saldanha Bay

12 November 2019 8:13 AM

Western Cape Provincial Minister of Finance and Economic Opportunities David Maynier outlines options being proposed.

Share this:
Read More arrow_forward

181108-bonginkosi-madikizelajpg

Bonginkosi Madikizela says DA leadership position not completely off the table

11 November 2019 2:22 PM

The Democratic Alliance Western Cape leader says he is stepping back for now.

Share this:
Read More arrow_forward

More from Business

The Duchess gin tonic

The Duchess - the story behind the world’s first non-alcoholic gin & tonic

14 November 2019 12:08 PM

Launched in 2016, The Duchess has won numerous awards and successfully broke into the UK, Belgium and the Scandinavian countries.

Share this:
Read More arrow_forward

Phone

Can’t find your phone? Drop everything – thieves can get into your banking app!

14 November 2019 10:55 AM

Did someone steal your phone? Contact your bank without hesitation warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

SAA

'Unions are making a mistake. SAA is dying. It’s not Eskom – we don’t need it'

14 November 2019 9:02 AM

SAA is on its knees, cap in hand, asking taxpayers for R2 billion this month. Unions must be careful, warns Guy Leitch (SA Flyer).

Share this:
Read More arrow_forward

saa over table mountain.jpg

SAA: Only obliged to inform unions of retrenchments via letter, which we did

14 November 2019 8:07 AM

SAA acting CFO Deon Fredericks says arrangements will be made for customers affected by cancelled flights due to strike.

Share this:
Read More arrow_forward

TikTok logo

TikTok - the best free interactive social video creator

13 November 2019 7:15 PM

Just because it is free does not mean there is no cost though

Share this:
Read More arrow_forward

saa-flightjpg

'SAA might be meeting with unions again in next 24 hours'

13 November 2019 6:48 PM

EWN's Babalo Ndenze reports on SAA management's appearance before Parliament’s Standing Committee on Public Accounts.

Share this:
Read More arrow_forward

191112-akinwumi-adesina-edjpg

Africa Investment Forum secures deals worth $40.1bn

13 November 2019 5:02 PM

There were 56 boardroom deals valued at $67.6 billion tabled - a 44% increase from last year.

Share this:
Read More arrow_forward

180123anoj-singh3jpg

Former Eskom CFO Anoj Singh a no-show at Saica disciplinary hearing

13 November 2019 1:41 PM

Singh faces 18 charges of misconduct at SOE's Eskom and Transnet. EWN's Theto Mahlakoana reports from the Saica hearing.

Share this:
Read More arrow_forward

190423-amcu-members-edjpg

Amcu postpones signing of wage deals with platinum producers

13 November 2019 12:57 PM

Mining MX contributor Ed Stoddard says the union has said via social media that they are still ironing some issues.

Share this:
Read More arrow_forward

191111-saldanha-arcelormittjpg

ArcelorMittal closure in Saldanha Bay a wake-up call - Cape Chamber of Commerce

13 November 2019 11:26 AM

Kieno Kammies speaks to Chamber executive director Sid Peimer and WC Premier Alan Winde about the economic setback for the region.

Share this:
Read More arrow_forward