Covid-19 vaccine: Government may have to milk bone-dry taxpayers some more
South Africa’s largest vaccination drive ever is imminent.
Treasury is considering a tax hike, along with several other measures, to pay for it.
Other options include increasing the budget deficit and reprioritising spending.
Rich countries and some poorer ones have started vaccinating their populations against Covid-19.
A handful of countries – notably Israel (28% vaccinated) and the UAE (19% vaccinated) – is set emerge from the pandemic sooner than anyone would have expected a few short months ago, having already vaccinated large proportions of their populations.
South Africa, however, is still watching from the side-lines, for now.
It’s very hard to imagine how this economy will generate cash flow to fund new spending… It could be funded by curtailing spending, but we don’t have evidence of that. Fiscal discipline is missing in action… It’s bizarre that there are still conversations about SAA…Professor Adrian Saville, Chief Executive - Cannon Asset Managers
A Covid-19 vaccine is [important] way over and above anything else… If we remain gripped by the pandemic, those [economic] plans will come to nought… It’s the most important priority.Professor Adrian Saville, Chief Executive - Cannon Asset Managers
R20 billion… is not a big number. It’s substantially less than 1% of government spending…Professor Adrian Saville, Chief Executive - Cannon Asset Managers
We have no evidence of fiscal discipline… most obviously, the wage bill.Professor Adrian Saville, Chief Executive - Cannon Asset Managers
Economically, it’s not possible [tax hikes] … Taxpayers are missing in action… There are some silver linings, but they don’t come close to lighting a very dark economy.Professor Adrian Saville, Chief Executive - Cannon Asset Managers
The best course of action is reprioritisation… We won’t get a stronger economy by cutting spending…Professor Adrian Saville, Chief Executive - Cannon Asset Managers
Listen to the interview in the audio below.
Source : https://www.123rf.com/photo_34972689_doctor-doing-vaccine-injection-to-elderly-woman.html
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