Budget unlikely to bring good news

IN THE wake of last year’s economic woes, South Africans will be paying close attention when Finance Minister Pravin Gordhan tables his Budget in Parliament on Wednesday. Given global dynamics and our slow pace of eco- nomic growth, few anticipate anything but pain. While everyone pays VAT and transport-related costs related to the fuel levy, a relatively small num- ber of individuals and entities carry a large por- tion of the tax burden, a fact that reflects the high rate of unemployment and the legacy of apartheid. That burden is likely to get heavier still on Wednesday. While bearing in mind the need to stimulate the economy and create meaningful employment, the government has to raise enough money to foot the bill for servicing the country’s debt, building and maintaining infrastructure and keeping the many arms of government going across the country. As well as covering the wage bill for the large civil service, revenue is also spent on transforma- tion and developmental goals. One can haggle over priorities, but much of this expenditure is not only necessary but essential. However, it is fair to carp at the extent to which cor- ruption, patronage and inadequate management bleed the fiscus. Likely tax hikes and the many ways in which money is wasted are not the only concerns. There is widespread speculation President Jacob Zuma is poised to once again shuffle his cab- inet. And speculation has it former Eskom boss Brian Molefe, who is to be sworn in as an MP, may well be earmarked to replace Finance Minister Pravin Gordhan in coming weeks. We are all too mindful of the financial bloodbath and political ructions that followed the axing of finance minister Nhlanhla Nene late in 2015 and the claims that state capture by the influential Gupta family has extended to Mr Zuma’s cabinet. This is enough reason for unease about what may await the nation after Budget day.