SA warns of possible tax hikes
Friday, April 16, 2010
"At that stage (February's budget) we didn't see any need to increase taxes, but if the economic and revenue position does not improve, we will have to look at that question again," he told parliament's finance committee.
An economic downturn last year hit government revenue, worsening the budget deficit, although a bigger-than-expected tax take in the 2009/10 financial year put the shortfall at 6.8 percent of GDP, less than the forecast 7.3 percent. South Africa kept spending up despite last year's recession to help the economy recover but has vowed to gradually cut the deficit and reduce debt.Lesetja Kganyago, the director-general of the National Treasury, said the budget deficit was expected to remain relatively large for the next three years due to a still weak global economy that may also curb local growth.
As the new Umbrella for Democratic Change (UDC) government takes charge, it must act decisively to equip the Directorate on Corruption and Economic Crime (DCEC) with the tools, laws, and resources needed to combat graft. The time for half-measures is over. DCEC Director-General, Botlhale Makgekgenene’s, recent address to the Public Accounts Committee paints a stark picture. Over five years, leadership instability, chronic underfunding and weak...