Budget 2017: Not likely to put money back in consumers' pockets

2017-02-16 19:11 - Carin Smith and Inga Mbambisa
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Cape Town - Political analyst Daniel Silke told Fin24 he will be looking for signs of a more innovative approach in Finance Minister Pravin Gordhan's Budget 2017 speech next week.

At the same time he does not see Budget 2017 as likely to put money back in the pockets of South Africans.

"I will look for signs whether government is willing to consider a more innovative approach to policy making in SA, because currently the growth in gross domestic product is insufficient for the large number of job seekers out there," said Silke.

He will also look for "cracks in the armour of ideology".

"We will have to see if it is a 'steady as she goes budget' or 9a) swaying from side to side budget," said Silke.

READ: Who will feel tax pain in Gordhan's Budget 2017?

Another big question is what the tax mix will be between so-called direct and indirect taxes. Could a wealth tax even be implemented? At the same time he does not think the fuel levy will be increased this time round.

Silke will also be interested to see if there is a chance of a private/public mix regarding state-owned enterprises.

For him it is important to compare Gordhan's Budget Speech with President Jacob Zuma's recent State of the Nation Address (SONA).

"I will look to see if Gordhan picks up on radical economic transformation mentioned in SONA. If Gordhan does not use this term, it could be that Treasury is not entering the debate at this time," said Silke.

"Will Budget 2017 put more flesh on the bones of the rhetoric from the SONA speech?"

LISTEN: Political analyst Daniel Silke expains what he will watch for in Budget 2017: