Currencies Direct South Africa – Commentary by Gareth Frye
It will be a balancing act, as the Minister deals with ballooning government debt, social unrest and shrinking coffers while attempting to drive economic growth (mission almost impossible?). Keep an eye out for: A rise in personal income tax, capital gains tax, the usual sin tax increases and higher petrol levy (and extra R28bn has to come from somewhere). Markets (and the rating agencies) will be focusing on the budget deficit and whether the Minister keeps to his promise of capping debt. Historically the budget has supported the rand; if there are no nasty surprises 2017 may be more of the same, enjoy.