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Subject

South Africa's national budget.

Significance

Finance Minister Nhlanhla Nene on February 25 presented his maiden full budget address to parliament. The revenue shortfall for 2014/15 rose to 14.7 billion rand (1.28 billion dollars) from 12 billion rand expected in October 2014's mid-term statement. Nene focused on how to raise additional revenue and contan spending without stymying growth. However, he left key questions unanswered.

Impacts

Davis Tax Commission recommendations may result in more tax increases and new taxes in the 2016 budget.

A special new fast-tracked, ten-year business visa for BRICS nationals could partly mitigate the impact of restrictive immigration rules.

Maize shortages due to drought (the worst in eight years) may drive price hikes, reducing the effect of low oil prices on food inflation.

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