2019 National Budget Speech – an opportunity to return to best practice
19 February 2019
Agri SA is looking forward to the Minister of Finance, Tito Mboweni’s first National Budget Speech.
The balance between government income (tax revenue) and expenditure is at the heart of the government budget. Rating agencies and financial market role-players will want to see a commitment to fiscal consolidation. The fiscus is under severe strain and a further downgrade from credit rating agencies must be avoided at all cost.
“This is an opportunity to return to best practice - using the right instruments to cut unnecessary expenses without fear or favour,” said Nicol Jansen, Agri SA Chairman of the Centre of Excellence: Economics and Trade. “Although fiscal consolidation is of the utmost importance, the first option should not be tax increases.”
Agriculture has shown that it is a proven sector that, with assistance from government, can build the economy and increase fiscal stability. The National Development Plan (NDP) overwhelmingly recognises the agricultural sector as a sector of growth and its potential to create job opportunities for rural communities. The Minister must take into account the current economic conditions and the possible negative impact of these increases on growth prospects.