Budget encouragement
I must say I waited for this year’s budget speech with some trepidation.
We entered into the Covid era from a pretty precarious position financially.
This included high debt, reducing tax collections and increasing demands for social benefits.
As Covid took hold, businesses began to close and jobs were lost.
The loss of jobs was not only from the slowdown in business but also because remote working showed that there was a need for fewer people in the workplace.
Rather than presenting a budget which told us we needed to tighten our belts and pay more tax, finance minister Tito Mboweni gave a very pragmatic speech focusing on:
1. Reducing debt;
2. Fixing infrastructure, not only to provide for existing needs but for future growth as well;
3. Investing in small businesses as a way to provide jobs; and
4. Reducing support for state owned enterprises (SOEs).
Rather than asking everyone to contribute through increased taxes, other than a fairly big increase in fuel levies, he focused on:
1. Reducing the government wage bill;
2. Spending more on infrastructure and less on consumption;
3. Rolling out the distribution of the Covid vaccine so people can get back to work in earnest.
I came away from the speech with a feeling that the government is serious about fixing our country after many years of abuse by, as I said earlier, not asking the taxpayer for more but rather managing how it spends the money it has.It gave me a sense of confidence and I hope it did the same for many others.
If so, we can put our efforts into building our businesses, increasing taxes and employing people.
I think this budget is positive for the property market, as increased confidence encourages buyers to spend their money. The conditions could not be better for getting into the property market. With low interest rates, house prices have been stable for a while, and the banks seem to be keen to provide bonds.
If you are interested in buying or selling a property, please contact me on 082-653-5643 or e-mail me at simon.oliver@ seeff.com.