WATCH: Budget was pro-poor, but not populist - expert

2017-02-22 20:35
(iStock)

Cape Town - Finance Minister Pravin Gordhan's National Budget was pro-poor, but not populist - and that is an important distinction, according to Crispin Sonn from Save SA.

"A lot of commentators have anticipated that the budget, given the political challenges that we've had in the country and some of the challenges within the ruling party, may come out with something more populist in its approach. But I think it was very well balanced between a few things."

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Sonn said Gordhan had a funding deficit and he chose to fill it by raising the progressive tax rate from 42% to 45% for wealthier individuals.

The minister announced anew super tax bracket of 45% for individuals who earn more than R1.5m.

"What the minister has done was to invest in infrastructure, broadband, housing, and he has chosen to fund that through sin taxes and higher income taxes."

Sonn said although Gordhan has been incredibly clear about where funds need to be allocated, he wasn't sure if sufficient resources were invested in the competency of public officials to make sure they execute the funds effectively.

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