Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I must say, I found the Budget to be quite a surprise. I was really expecting a VAT hike and possibly a dividend tax hike as well. Obviously, some of it depends on the R160 billion cut in the wage bill over the next three years which the Trade Unions have not bought into. At some point they will have to stop bring inflexible and start doing what is right with South Africa, but let’s not exclude the possibility of people overturning rubbish bins in the streets, etc again as government employees go on strike when they start realising the impact of that R160 billion cut in the government wage bill on their own salaries. There was of course all the normal sin tax increases, which I think should have been higher and the growth forecast for South Africa was reduced down further to 0,9%.
Banks like JP Morgan are predicting that we are likely to see some dramatic interest rate cuts in SA which will obviously ease the pressure on consumers, particularly in terms of your loans on a car or a house. The current forecast that the banks are making is that the interest rate will decrease in SA by the end of the year by a total of 0,5% with possibly two 0,25% reductions. One of the positives pointed out was the increase in platinum prices, and that is obviously very good for South Africa.
Posted by Michael de Broglio on Thursday 19-Mar-20
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Comments
Zandelee said:
on Thursday 09-Apr-20 09:33 PM
The decrease in the interest rates will definitely benefit all households especially during this time.It will also stimulate growth during this period in which we face an economic decline.
Brenda Strydom said:
on Friday 03-Apr-20 09:23 AM
Its great news to take the stress of your shoulders a little bit.But we still have to go an long way and lets all stay positive
Melissa said:
on Friday 03-Apr-20 07:35 AM
Decreases is always good news for us, it definitely gives us some sort of relief and a weight off our shoulders
Sinead said:
on Wednesday 01-Apr-20 08:37 AM
Great news for the consumers, for a change... I don't think many people expected it. We're always expecting more terrible news. Let's stay positive!
Bronwyn said:
on Tuesday 31-Mar-20 05:27 PM
This is great news that we wont have an increase on vat but they will make up for it by adding on a extra Rands Somewhere Ei Petrol Food etc.
Daniella said:
on Tuesday 31-Mar-20 12:48 PM
Decreases in interest rates is definitely a win - I still feel like there is a long way to go into fixing the Country which is quite expensive.
Dasanya said:
on Tuesday 31-Mar-20 09:35 AM
Government needs to be spending money on the right things which is the bottom line. Yes, a cut in the interest rate will bring relief for consumers which is definitely a good thing however, we are struggling as a country with endless issues and by reducing government salaries, we can only hope that this money will be put to better use.
Mathilda Du Preez said:
on Tuesday 31-Mar-20 09:23 AM
Decrease in interests rates is at least some relief for people who have bonds and car repayments
shanelle said:
on Tuesday 31-Mar-20 08:51 AM
A decrease in the interest rate brings relief to so many people, Many south Africans are pleasantly surprised by the budget. I am one of them. the economic future is uncertain at this point but we must remain positive.
Michelle D said:
on Tuesday 31-Mar-20 08:01 AM
I do think that too much of our revenue goes towards government salaries, but the issue of over staffing in government has been a constant issue in our recent history and I honestly think downsizing our governmental staff is pivotal in ensuring we have enough revenue to enact substantial change.
Brumilde Cronje said:
on Tuesday 31-Mar-20 07:43 AM
The rumors that went around just before the speak were scary, they were talking about another tax increase, good thing it didnt happen, we are in the toilet at the moment
Ashleigh said:
on Tuesday 31-Mar-20 07:36 AM
If people in SA had more faith in the financial decisions we would be happy hearing what was decided but instead we are still concerned either way.
Zindy said:
on Monday 30-Mar-20 06:44 AM
A slight decrease in the interest rate i'm sure will alleviate a little pressure however always going to get those that are never happy if it increases or decreases not enough or this or that its just bound to happen people always complain.
Prishani said:
on Thursday 26-Mar-20 04:54 PM
I think that many South Africans were quite pleasantly surprised by the budget. I hope all the necessary parties will play their part in making sure we still to the goals.
Claudia B said:
on Thursday 26-Mar-20 07:13 AM
It will be great that the VAT does not increase, but like Natasha said, something like striking will definitely not end and I guess we just need to get use to it now. The VAT that is going down, it is good for the country.
Natasha said:
on Monday 23-Mar-20 10:03 AM
Its great news that Vat is not increasing but there will always be someone that is striking its never going to end so we just have to get use to it.
Victoria said:
on Monday 23-Mar-20 09:11 AM
That would be awesome if there was a dramatic interest cut, will make things a little bit more bearable. Still good that the interest rate has come down.This is very good news for South Africa and I hope the good news carries on for us.
Kathryn said:
on Friday 20-Mar-20 04:57 PM
Given the need to stimulate the South African economy and promote growth, VAT not increasing is great news.
Joyce said:
on Friday 20-Mar-20 04:55 PM
Let's hope the banks prediction that the interest rate will decrease, will be correct. The consumers will at least have some cash left in their pockets
Karien said:
on Friday 20-Mar-20 04:53 PM
I also expected a VAT increase and a higher sin tax increase. A interest rate cut in South Africa, I would think, is a necessity due to the current situation the country and world finds itself. The economic future is uncertain and all we can do as consumers and employees is to hope for the best for our country and the world as a whole.
thembi said:
on Friday 20-Mar-20 04:44 PM
It is good to see this interest rate going down. I want it to fall more. This will help the people of this country
Ziyanda said:
on Friday 20-Mar-20 11:30 AM
The interest rate cut is definitely a positive thing especially for those who are paying of their cars and homes, and those who are looking to buy. But we must be ready for government employees' strikes too.
Roxanne said:
on Friday 20-Mar-20 11:24 AM
That is amazing. Lets just hope they keep their promise. It will ease the pressure on a lot of South Africans.
Chante said:
on Friday 20-Mar-20 08:18 AM
At least there is a tiny positivity to everything that is going on and I think the decrease in interest rates brought relief to most South Africans. But I believe the government employees are going to fight the possible forthcoming decrease to their salaries.
Angelique said:
on Friday 20-Mar-20 08:16 AM
Wouldn't it be lovely if we see a dramatic interest rate cut? Some positive news for a change. We must try not always be so negative and embrace the little victories. I know - easier said than done.
sandra said:
on Thursday 19-Mar-20 06:15 PM
I will only believe these dramatic interest rate cuts once results speak. Right now we are still paying high interest rates.
Nicolene said:
on Thursday 19-Mar-20 05:00 PM
Wow! What a surprise. At least a little bit of good news. I don't think that they will ever do what is right for South Africa. The government's employees will most definitely strike. Let's wait and see.
Courtney said:
on Thursday 19-Mar-20 03:10 PM
The striking is going to happen definitely, people like to destroy things when something's not going their way. On the other hand there is good news about South Africa!
Shristi said:
on Thursday 19-Mar-20 01:49 PM
I think the decrease in interest rates surely brought a relief to a lot of South Africans that are busy paying off cars and homes. On the other hand the government employees are definitely going to fight the possible R160 Billion cut on their salaries and I foresee a lot of strikes and disruptions taking place..
fikile said:
on Thursday 19-Mar-20 09:56 AM
It's always good to have some good news even though we know that we can't keep them for long because we have to focus on the big issues like this not a big issue.
Bianca Niemann said:
on Thursday 19-Mar-20 08:55 AM
It's a relief to read about a little good news concerning our country amidst all of the chaos. No doubt the government employees will strike, as they always do, and try to turn the country on it's head again but that is something that does not come as a surprise anymore.
Lucretia said:
on Thursday 19-Mar-20 08:50 AM
Reductions in interest rates always balance out with me. It is good for my bond and car but bad for my investments......it is what it is an i accept it regardless. Hopefully when i go on retirement one day the cost of living will be better than now because then my investments will be in my favour :-)
Melandre' said:
on Thursday 19-Mar-20 08:37 AM
The decrease in interests rates is fairly great news, especially for the majority of SA that have extremely high interest rates on their home loans or even those, as myself, that are busy paying off a car. Small changes can carry a rather big impact if executed correctly. The increase in Platinum prices will surely benefit our country. However, I do wonder how the government employees are going to react to the possible R160 Billion cut on their salaries. Looking at precedence it will probably end in a rather disruptive riot. A positive cut for us civilians yet it could turn sour depending on the reaction of our dearest government employees.
Michelle Smillie said:
on Thursday 19-Mar-20 07:59 AM
I completely agree that chances are extremely high that the government employees will strike when they realise the impact of the R160 billion cut on their salaries. On the one hand I want to think that perhaps this will push the government employees to finally start working. As we all know government employees, more often than not, don't answer their phones or emails, refuses to help someone in person because it's 12h00 and almost lunch time (which is supposed to be 13h00 only) or simply just lie back in their seat and take a 3 hour nap. I however highly doubt that they will ever see a problem in their work ethics. After all, it is natural for people to first see the problem in someone else before looking at themselves. Only time will tell what will transpire I guess, although we can make some educated guesses.
Alexis said:
on Thursday 19-Mar-20 07:45 AM
Good to hear about the Platinum prices increasing and a positive aspect to everything going on. I can imagine that there will be a bit of upset due to the decrease in the government wage bill.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
