Mboweni raises the white flag on debt stabilisation
26 February 2020
Growth
Finance Minister Tito Mboweni is right to identify economic growth as the only antidote to South Africa’s financial crisis. Growth brings more revenue to pay for more basic services, and growth helps bring down debt over time.
He confounded expectations of further tax increases and in fact gave some small income tax relief. This is welcome news, especially for working families who have been struggling to make ends meet with successive tax increases in recent years. More money in citizens’ pockets means that they can spend more, or save more, and both of these are good for growth.
He also indicated an intention to reduce corporate tax rates over time. This too is a positive, pro-growth announcement.