Several options considered on budget that will consider SA ‘fiscal constraints’ - Cabinet
Leading to Monday’s special meeting, parties were still not seeing eye to eye on budget proposals, like a VAT hike, to plug the funding gap as the country struggles with high debt levels.
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CAPE TOWN - Cabinet said a variety of options were considered on the budget that will take into consideration the "fiscal constraints" of the country.
However, leading to Monday’s special meeting, parties were still not seeing eye to eye on budget proposals, like a VAT hike, to plug the funding gap as the country struggles with high debt levels.
The Democratic Alliance (SA) has already rejected any tax hikes, even a smaller VAT hike that is less than the original two percentage points.
In a statement issued on Tuesday, Cabinet said the team led by Deputy President Paul Mashatile and supported by National Treasury tabled a variety of options that were considered by Cabinet.
It said at the previous meeting on 24 February, President Cyril Ramaphosa set up a team of ministers led by Mashatile to work with the minister of finance and his National Treasury team "to consolidate Cabinet inputs for further consideration".
Cabinet said in compliance with the provisions of Section 27 of the Public Finance Management Act, the minister of finance was mandated to select from the discussed options and fund the budget in a manner that takes into consideration "the fiscal constraints of the country and mitigates the impact on the poor and middle-income households".
The options also take into consideration a budget that "supports economic growth".
Cabinet said with the conclusion of the input process into the budget, Minister of Finance Enoch Godongwana and National Treasury are now set to finalise the budget and table it before Parliament next week Wednesday.