Domestic markets rallied just after Finance Minister Tito Mboweni began speaking, with the rand strengthening to around 14.40/dlr from 14.55, while bond yields dropped a few basis points. This speaks to the fact that it was not as bad as many expected – there was also a pledged cut in domestic debt issuance. That doesn’t mean that economists are popping bottles of bubbly, which are about to climb in price with an 8% hike in sin taxes.
“It seemed like quite a jolly time in parliament during Mbowen’s speech. Granted, it was a much more positive speech than I think a lot of analysts expected – there was not a huge increase in VAT or income tax, and corporate income tax was actually lowered,” Shawn Duthie, managing director of the Africa-focused consulting firm Inyani Intelligence, told
Budget Speech 2021: Consumers to pay even more for fuel
thesouthafrican.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thesouthafrican.com Daily Mail and Mail on Sunday newspapers.
Budget Speech 2021: Consumers to pay even more for fuel
thesouthafrican.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thesouthafrican.com Daily Mail and Mail on Sunday newspapers.
Hike in electricity tariffs will lead to inflation shock says economist Updated
Nushera Soodyal
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Economist, Mike Schussler said the possible hiking of electricity tariffs will result in an inflation shock when our economy is weak, and while many people don’t have money.
Electricity bill / iStock That alone will increase inflation by 0.75% so just one item will add a quarter of the current inflation rate to the actual rate and that is an extremely bad situation for us, he said.
Schussler’s comments come after the Gauteng High Court this week ruled Eskom can recover a further R10 billion in the 2021/22 financial year from customers.