South Africa: Agri SA on the 2018 Budget Speech of the Minister of Finance CNBC Africa

South Africa: Agri SA on the 2018 Budget Speech of the Minister of Finance CNBC Africa

The 2018 national budget was tabled under very difficult economic circumstances. The Minister of Finance acknowledged that difficulty, but necessary trade-offs had to be made to formulate a budget that moderates spending, raises revenues whilst aiming to minimize the potential negative effect on growth.

The 2017 GDP growth projection has been revised upward to 1 per cent, from the 0.7 per cent expected at the time of MTBPS last year. Economic growth is forecasted to be 1.5 per cent in 2018, rising to 2.1 per cent in 2020. However, government still faces a revenue gap of R48.2 billion in the current year. The consolidated deficit is projected to narrow from 4.3 per cent of GDP in 2017/18 to 3.5 per cent in 2020/21.

From an agricultural perspective, Agri SA is particularly pleased that the Minister took time to acknowledge agriculture’s contribution to the country’s economic growth, says Dan Kriek, president of Agri SA.

Unfortunately, once again agriculture received relatively little further attention in this budget as it did in the medium-term budget policy statement (MTBPS) of October last year. This is despite the claims made by the minister that government remains committed to the goals set in the Constitution and the National Development Plan (NDP).

Agri Northern Cape

Agri SA se verwagtinge van die 2018-begrotingsrede ProAgri – Spesialisskrywer

Agri SA se verwagtinge van die 2018-begrotingsrede ProAgri – Spesialisskrywer

Dit is só dat die jaarlikse nasionale begrotingsrede ‘n geleentheid in Suid-Afrika is waarvoor almal wag. Tesame met die positiewe veranderinge wat tans plaasvind in die politieke landskap, word daar verwag dat die Februarie 2018-begrotingsrede beslis aandag sal geniet – nie net van die besigheidsektor en individue binne Suid-Afrika nie maar ook buite die land.

Graderingsagentskappe sal fyn luister na die begrotingsrede. Volgens Agri SA se president, Dan Kriek, bestaan daar ‘n risiko dat Suid-Afrika verdere kredietafgraderings in die gesig kan staar indien die begrotingsrede nie die graderingsagentskappe gerusstel nie; daarom sal die begroting hierdie agentskappe tevrede moet stel dat Suid-Afrika verbind is tot handhawing van die geloofwaardigheid van sy fiskale raamwerk en bestedingsplafon.

Volgens die mediumtermynbegrotingsraamwerk (MTBR) van Oktober verlede jaar, sou Suid-Afrika belastinginkomstetekorte van ongeveer R50,8-miljard vir 2017 en R69,3-miljard in 2018 aanteken. Teen 2020/21 sal ongeveer 15% van die staat se inkomste bestee word om skuld af te betaal. Die land se begrotingstekort word gestel op 61% van die bruto binnelandse produk (BBP) teen 2020/21.

Agri Noord Kaap