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eNCA | What’s at stake in Gigaba’s first budget
JOHANNESBURG – With his first mid-term budget policy statement due on Wednesday, Malusi Gigaba is battling to generate market confidence with state-capture allegations clouding President Jacob Zuma’s administration.
There’s a great deal hanging on South Africa’s 2017 medium term budget policy statement. Three factors are at play: there is political turmoil around the governing African National Congress, the country’s economy is performing poorly and this is the first budgetary statement from Gigaba.
What keeps you up at night in relation to this medium term budget?
The single most worrying factor is the lack of economic growth South Africa faces. Growth has slowed down significantly in recent years and the economy flirted with recession after shrinking during the last quarter of last year and the first quarter of this year. The economy did bounce back into positive growth during the second quarter but the outlook remains unimpressive. Only 0.5% growth is expected for 2017 and less than 2% over the medium term.
Owing to this lack of growth, unemployment is on the increase – it now stands at a staggering 27% – while government revenue is under pressure. It also implies that the government’s burden on the economy (for instance total government debt as percentage of gross domestic product, orDebt/GDP ratio) will increase.
Government’s debt to GDP ratio is currently budgeted to level out around 50%. This is to be welcomed because any increase in the ratio increases the interest burden.
But if slow growth and revenue shortfalls persist, government debt will increase. The debt to GDP ratio will be on its way to 65% of GDP in the medium term.
And should the combination of low growth and growing government expenditure continue after the period of this medium term statement (2017/18 – 2020/21), the debt/GDP ratio might be on its way to 100%. This projection really stresses one of the most worrying factors that has to be addressed in this statement: Limiting the level of government debt before it reaches this level.
In other countries where this level has been exceeded, severe adjustments had to be forced on their economies. Take the Irish Republic case. Remuneration levels and employment numbers in the civil service had to be cut dramatically to deal with the Irish government debt crisis.
There is a new finance minister in place and he comes with shifting political dynamics. How do you rate him and what do you expect from him?
It is difficult to rate the new minster, given that he’s only been in the job since April and the fact that he has not yet tabled his first budgetary statement. The only statement against which his performance can really be assessed is the 14-point plan he announced in July 2017.
We’ll be watching the medium term statement for his report back on progress in implementing it.
But Gigaba comes with worrying political dynamics, including accusations that he is party to corruption.
And its difficult to separate him from the history of bad policy options of the African National Congress which has delivered the prevailing lacklustre economic performance. The fiscal crisis facing South Africa is a direct result of these policies.
How significant is the medium term budget policy statement?
It’s very important as it provides an overview of government’s plans for expenditure and for raising revenue over the next three years. A three year view is significant because it provides insight into planned government expenditure and indicates expected tax increases that South African taxpayers have to face. It also informs decisions of the credit rating agencies about South Africa’s fiscal stability.
The statement forms the basis of the annual budget of government revenue and expenditure that is tabled in Parliament in February each year.
The statement is the first formal opportunity after the tabling of the annual budget where the government reports on the actual performance of revenue raised in comparison to budgeted revenue and of actual expenditure in comparison to budgeted expenditure.
This reporting by government gives an early indication of expectations for the main budget in February. For instance, if government revenue is underperforming, the expectation is that taxes will be increased the following February. Indeed a tax increase might materialise in this medium term statement.
What in you view will be key focus areas in this medium term statement?
As South Africa’s economic growth is currently lower than the forecast used for the 2017/18 fiscal year, tax collection has come under pressure. A revenue shortfall is expected for this fiscal year. The medium term statement is when the size of the shortfall will be formally disclosed.
Given expectations of a substantial shortfall, South Africans should brace themselves for substantial tax increases in the main budget in February 2018. The fiscal crisis might even be so serious that the government might decide to divert from previous practice and announce tax increases in this medium term statement.
Like any other government in the world, it raises revenue through taxes and use this revenue to fund its expenditure. If expenditure exceeds revenue, the difference must be borrowed, which adds to the level of government debt, or expenditure must be cut.
One of the biggest budgetary headaches is the ailing state owned enterprises. What should be done?
Government is really throwing good money after bad by using public money to bailout ailing state owned enterprises. I have said a long time ago that South African Airways should simply be given away. This is a much cheaper option for the taxpayer instead of never ending bailouts. The South African government should reassess its holding of state owned enterprises and close, sell or give away those that are no longer financially viable. Such action will remove a large financial burden on the South African taxpayer.
Jannie Rossouw, Head of School of Economic & Business Sciences, University of the Witwatersrand
This article was originally published on The Conversation. Read the original article.
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eNCA | Public works defends R32m ‘splurge’ on KZN premier’s official residence
DURBAN – KwaZulu-Natal’s public works department has hit back at media reports that R32-million has been “splurged” on premier Willies Mchunu’s official Parkside residence in Pietermaritzburg.
“Contrary to the recent media reports of the so-called ‘splurge of R32-million’ at the premier’s Parkside official residence, thus far only R821,000 has been spent on the renovations,” public works spokesperson Kiru Naidoo said in a statement.
No other tenders had been advertised or awarded so far for the completion of the project, he said.
Following a reply to a question in the legislature on Wednesday, the Democratic Alliance’s Sizwe Mchunu said the renovations were unnecessary and the cost was “staggering”.
Costs included renovating the swimming pool surrounding area, including the paving and braai area, to the value of R1,010,000; upgrading three bathrooms at a cost of R540,000, and repairs to electrical light fittings to the value of R180,000.
The 3.1832 hectare Parkside residence is 137 years old and comprises a main house, two conference facilities, staff quarters, and office facilities. It is one of KwaZulu-Natal’s numerous protected structures based on heritage value. Any alterations need to pass through the Amafa Heritage Council which administers alterations.
This had had a “significant cost implication” on renovations, according to Naidu.
“The projected costs for the renovations of the Parkside residence are spread over a period of seven years and are in line with stipulations of Amafa Heritage Council regarding buildings that are over 60 years of age,” he said.
Parkside was intended for use as an official residence by the premier when necessary and for hosting guests and dignitaries, and as a conference facility for press conferences and official meetings.
“The premier has his personal home in Durban where he resides,” said Naidu.
“In all the projects undertaken so far in this facility, including the upgrade and refurbishment of the three bathrooms, a competitive bidding process was fully followed.”
Parkside was a unique facility worth preserving for use and posterity.
“As always, this is subject to affordability and prioritisation. It is precisely because we have many competing priorities that the programme is not final,” Naidu said.
The R32-million master plan included upgrades of external water reticulation and groundworks; repairs, upgrade, and resurfacing the road network for about 1.8km within the complex; upgrades of two existing conference centres; replacement of the precast concrete boundary wall including security installations; alterations and additions to convert the existing outbuilding into protectors’ accommodation to improve security measures.
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Sport24.co.za | 5 Currie Cup players who would be Bok tourists
Johannesburg – What with Super Rugby stretching into August, the second tier players all bought by overseas clubs and certain contracted players precluded from playing in it by SA Rugby, the Currie Cup isn’t what it used to be any more. But it still is a tournament from which a few players can make claims for higher honours. Here are five who have put their hands up for the Springbok end-of-year tour.
Warrick Gelant
(Full back, Blue Bulls)
He may stand at only 1.78m tall, but Gelant has been head and shoulders above everyone in the Currie Cup. In an age where there’s a statistic for just about anything in rugby, Gelant had scored the most tries (10), run the most metres (1 423) and made the most line-breaks (20) at the end of the competition’s round-robin stages. Springbok incumbent Andries Coetzee has been nothing short of manful in the position since his debut in June, but Gelant offers so much more: try scoring ability, creating them, an understanding of space and how to exploit it and allround skills so outrageous it’s difficult to believe he is a South African player. Bulls coach John Mitchell has thoughts about him playing outside centre, but for the time being let’s get the prodigy on the plane to Europe.
Lukhanyo Am
(Outside centre, Sharks)
Owing to another untimely injury, Am hasn’t had the opportunity to fully light up the Currie Cup, even though he did do some damage early on in the competition playing inside centre. But the fact that the Bok centres, especially Jesse Kriel at outside centre, didn’t look terribly flash, means he’s due the opportunity denied him by an eye socket injury the day he was named in the first Bok squad of the year. Am may not have the muscles of Kriel or the size of Jan Serfontein, but he has a wonderful rugby brain and the ability to do the right thing at the right time on a rugby field, including in defence and over the ball. He’s that rare thing in SA rugby…a proper outside centre.
Sbu Nkosi
(Wing, Sharks)
At 1.81m Nkosi is not as tall as a player frequently nicknamed “Lomu” should be, but everything he does is pretty blockbuster. Possessed with tree trunks for thighs, raw power and explosiveness, a decent step and offload in contact and a skrik vir niks attitude, the raw Nkosi (he was only scheduled to play a little SuperSport Rugby Challenge before injury paved the way to Super Rugby) has the attributes to be a beast for South Africa. Incidentally, he is third on the top try scorers list (eight) and second on the line-breaks tally (15).
Thomas du Toit
(Prop, Sharks)
With veteran Beast Mtawarira powering through what is supposed to be the nervous 90s in the Bok jersey and the flame-haired Steven Kitshoff in red-hot form, loose-head prop isn’t exactly a position which needs recruiting for in the national team. But “Thomas the Tank”, still only 22 despite seemingly having been around forever, has been scrumming powerfully for the Sharks. If the need somehow comes for a new loose head prop in the Bok side, he probably shades Ox Nche as the next cab out of the taxi rank on the basis of having started while the other has been providing impact.
Kwagga Smith
(Loose forward, Lions)
If ever there was a candidate for out and out bolter for the end-of-year tour it would have to be the Blitzboks man. But as a 1.80m and 90kg loose-forward his case not only would need some advancing for the selectors to take it seriously, the Boks would also have to think about altering how they play to suit Smith’s speed and skill. While he seems to punch above his weight in contact, there are doubts if he would be able to do that all day in a tight game. But if the Bok selectors were to get a little adventurous with the vacant and troublesome eighthman spot, they could give him a go.
Health24.com | Things you shouldn’t say to someone who stutters
Stuttering is an impediment that affects fluency of speech. It can begin during childhood and last well into one’s adult years.
What causes stuttering?
Stuttering can be caused by different things:
- Genetics
- Language and speech development when young
- Neurophysiology (stuttering can occur after a head injury or stroke)
- Anxiety (although emotional trauma doesn’t always cause stuttering)
How is it diagnosed?
Stuttering can be diagnosed by a speech therapist. If you suspect your child stutters, it’s important to seek help and treatment as soon as possible.
Almost 70 million people worldwide stutter. There are ways to treat and control stuttering through speech therapy and breathing exercises, but there is no definite cure.
This video also gives us insight into stuttering in a funny, yet informative way.
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News24.com | Job ad: whites only, please
Production experts in the TV industry could not believe their eyes when they saw an advert posted online for a senior position.
Looking to hire a commissioning editor in Johannesburg at an annual salary of R800 000, the ad read: “Please note: We are specifically looking for a white, English-speaking commissioning editor as this role is for someone who will produce soapies and programmes in this specific demographic.”
Alerting City Press about the patently racist ad, one source – who does not wish to be named for fear of jeopardising their employment prospects – applied for the position and engaged with the recruitment agency, Kandhi Consulting.
The position, they were told, was for M-Net.
“They were specific about the TV station being M-Net, the kind of contracts M-Net offers, the psychometric tests that it does, etcetera.”
M-Net has distanced itself from the ad, saying it was not authorised and that the work had been subcontracted by its agency to another recruitment outfit without the company’s knowledge.
Yolisa Phahle, the chief executive of M-Net, said the station was “appalled” by the “racist, unlawful and disgraceful advert, which would be contrary to our recruitment policy, our values, the Constitution and other legislation”.
She sent City Press the extensive role profile that had been submitted to the original recruitment agency. It made no mention of demographic requirements.
Another TV executive, who also wished to remain nameless, could not contain their disbelief when shown the ad. “There are lots of excellent black commissioning editors who handle work in other demographics. Since when can a black person not make TV for white audiences? White people make TV for black audiences right across the film and TV industries. This is just racist.”
Kandhi Consulting staff were, at first, happy to speak to City Press over the phone. They confirmed the authenticity of the ad and that it was for a position at M-Net.
However, they referred us to their more senior associates, Ambit Recruitment.
Ambit’s Caren Doyle denied any involvement in the ad: “I confirm that this was not something that M-Net or Ambit was aware of, and we do not condone it either. The consultants in question had, at the time, just started working with Ambit Recruitment and posted this ad in their own capacity.
“It was a very unfortunate oversight, which should not have happened. This is in no way a reflection of our clients’ policies, nor that of Ambit Recruitment,” Doyle protested.
M-Net’s Phahle said the company had established that, “without our knowledge, our recruitment agency subcontracted another agency to advertise the commissioning editor vacancy”.
“Our proposed advert, sent to our recruitment agency for this vacancy, made no reference to the race of the applicant. Our recruitment agency has advised us that it did not mandate the subcontracted agency to word the advert in this racist manner.”
Phahle said attempts to reach the subcontracted agency by telephone had not been successful by yesterday.
“We view this in the most serious light and are investigating the matter. We will take appropriate and firm action, including of a disciplinary nature, should we find that anyone on our behalf was involved in the production of this abhorrent ad,” she said, adding that the station produced “shows that reflect our country’s diverse cultures and languages”.
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