More needed for economy to grow - Economist
18:10 Wed, 22 Feb 2017
More needed for economy to grow - Economist | News Article
Pravin Gordhan (Gallo Images)
Bloemfontein - Finance Minister Pravin Gordhan's announcement of R28 billion additional taxes is on the higher end of what was expected, but experts believe a lot more than simply higher taxation is needed if we hope to see economic growth.

Chief Economist at KPMG, Lullu Krugel. Krugel says alternative sources of income are needed.

Krugel says of the R28 billion tax income increase, "It is on the higher side of what we were expecting. I would have liked to hear more about growth. He did mention Privatization of state owned enterprises in one sentence, but I would have really liked to hear a little bit more of that because we need to unlock value in the economy and get funding from somewhere else to actually get the economy growing.”

She believes it would have been good for the minister to allocate more incentive for industries such as the motor vehicles manufacturing, mining, and agriculture. She adds that the minster mentioned that the DTI is taking measures to grow Small and Medium Businesses and to generate income, but it seems as though is it not a high enough priority to grow the economy and to create jobs.

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