Johannesburg – All eyes will be on Finance Minister Tito Mboweni when he delivers the Budget Speech 2021 later today, this is likely to be one of the most difficult Budget Reviews delivered.
PwC economists and tax experts today released their prediction for the Budget Review 2021. Some of these are:
• PwC economists predict that budget margins will be trimmed at the margins and reprioritized towards medical and other necessary social expenditure.
• The Finance Minister is likely to restate the Government’s commitment to reducing the public sector wage bill.
• The Minister will emphasize the need to ensure an active approach to debt management.
• Political pressures are likely to prevent the National Treasury from reducing the quantum of expenditure allocated to the bailout of SOEs.
• Given the rising levels of government debt, it is unlikely that rating agencies will be satisfied with Budget 2021.
• Budget 2021 is likely to give full details as to the total costs of rolling out the COVID-19 vaccination programme.
• It will not be necessary to increase taxes to fund the vaccination programme.
• Tax revenues are likely to exceed the forecasts made by the MTBPS 2020 by between R100bn and R108bn.
• It is expected that tax increases proposed in the MTBPS 2020 will not be introduced while those for the outer years will be relaxed.
• Tax revenues for the 2021/22 fiscal year will approximate R1.3 trillion.
Click here to get your Matric 2020 results.
Follow @SundayWorldZA on Twitter and @sundayworldza on Instagram, or like our Facebook Page, Sunday World, by clicking here for the latest breaking news in South Africa. To Subscribe to Sunday World, click here.
Sunday World
