No “Jump to the left”
Finance minister Pravin Gordhan delivered his first budget related speech, to some observers the concerns mounted before about whether there would be a change in policy.
I would say, almost predictably, that there was not. Fundamentally South Africa has a good financial system, with sound principles, that over the past 14 years has delivered results.
It would be inconceivable that they ANC would allow changes that may in fact cause harm to the country. Certainly on the eve of one of the worlds greatest events (2010 World Cup) it would be insane to draw negative reaction.
Pravin did what Trevor has done for many years before, he has been able to lobby government to ensure that they understand the importance of sound fiscal management.
I am confident that we will see a continuation of sound financial management under this minister.
One warning bell is the comment that tax payers will have to wait and see if there is an increases in taxes next year. What we do know is that under prudent financial management, sometimes you have to make unpopular decisions. I think that we may see some changes in the taxes as we seek to get rid of the deficit.