Highlights of medium term budget presented in parliament by Finance Minister Nhlanhla Nene on October 22, 2014…
GDP (or economic growth) is expected to slow to 1.4% this year and to be 2.5% in 2015; 2.8% in 2016 and 3% in 2017.
The current account deficit is expected to narrow to 5.6% of GDP in 2014 from 5.8% of GDP in 2013. It is expected to narrow further to 5.4% in 2015 and again reduce to 5.0% of GDP in 2017.
Tax increases on the cards for the 2015/2016 tax year.
Inflation is expected to average 6.3% in 2014 and is expected to be 5.9% in 2015; 5.6% in 2016 and 5.4% in 2017. Further rand depreciation would be an upside risk to the inflation forecast.
Cost cutting measures by government to include: cutting planned expenditure on travel, conference venues and catering across government departments; the withdrawal of funding for government posts that have been vacant for some time and government consulting services to be capped.