Budget must provide 'clarity'

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Finance Minister Pravin Gordhan. Photo: Neil Baynes

In the Budget speech on February 22, the SA Chamber of Commerce and Industry (Sacci) will be “seeking clarity” on a number of issues, its CEO Neren Rau says.
These issues include the planned financing model of the various infrastructure investment programs and the specific borrowing strategy to avoid crowding out of the private sector, as well as the progress already made on provincial interventions by the National Treasury and the expected timelines for continued assistance to these provincial governments towards restoration of a conducive business environment and fiscal sustainability.
Sacci also wants information on the strategy to achieve a tax neutral outcome for the South African business community given the possible additional taxes such as the carbon tax and local business tax as well as progress on finding a suitable funding model for the National Health Insurance (NHI) scheme.
Other issues on which clarity is required concern tangible and immediate measures to cut regulatory bottlenecks and red tape for business generally, and SMEs in particular, in order to reduce the cost of doing business in SA.
Information on progress on the integration of development finance institutions (DFIs) and general business support, promotion initiatives and plans to ease the access to finance for SMEs is also required, according to Sacci.
Clarity for foreign and domestic investors on economic stability specifically relating to concerns on nationalisation is needed and Sacci hopes that the Budget statement “will reflect a business-friendly fiscal policy that reduces the many hindrances to achieving economic growth and job creation by the private sector in SA.” – I-Net Bridge