Last week Pravin Gordhan presented one of the most important budgets to date. Not only did he have to increase revenue and stimulate the economy whilst keeping an eye on inflation, he had to prevent South Africa from being declared “junk status” by International ratings agencies. The worse our rating, the more expensive our debt repayment is. He received mixed reviews but overall commentators were positive. I have included Nazmeera Moola from Investec Asset Management comments below.
Budget 2016: Encouraging on the whole
“Finance Minister Pravin Gordhan and the National Treasury announced a generally
pleasing budget today. As he has indicated over the past few weeks, the Minister
showed clear intent to keep the investment grade rating intact by announcing a
number of measures to increase revenue and limit spending. While we would have
liked to see a consolidated budget deficit to be reduced to below 3%, it would
appear that the Treasury has done enough in this budget to stave off the threat of
a downgrade in June. On a first read, while the lack of tax hikes may raise some
alarms, a commitment to controlling expenditure is ultimately a much more
sustainable way to control the budget deficit.” To read the rest of the article, click the link below.
Budget Comment PDF
The second step in Wealth Management is your Personal Budget and budget setting. If you do not have a budget please draw up one and in my next blog, we will see what type on budgeter you are.
powered by