ATC140306: Report of the Select Committee on Finance on the 2014 Fiscal Framework and Revenue Proposals, dated 5 March 2014
REPORT OF THE SELECT
COMMITTEE ON FINANCE ON THE 2014 FISCAL FRAMEWORK AND REVENUE PROPOSALS, DATED 5
Minister of Finance tabled the 2014 National Budget before Parliament on 26
February 2014 in line with section 27 of the Public Finance Management Act
(PFMA), (Act 1 of 1999) and section 7(1) of the Money Bills Amendment Procedure
and Related Matters Act 9 of 2009 (the Money Bills Act).
Section 7(2) of the Money Bills Act requires
the Minister to include, among other information, the proposed Fiscal Framework
and Revenue Proposals in the tabled Budget.
to section 8(3) of the Money Bills Act, the Standing and Select Committees on
Finance must, within 16 days after the tabling of the Budget, report to the
National Assembly (NA) and the National Council of Provinces (NCOP),
respectively, on the proposed Fiscal Framework and Revenue Proposals. The
Fiscal Framework gives effect to the national executives macro-economic policy
and includes; estimates of revenue, expenditure, borrowing, interest and debt
servicing charges and an indication of the level of contingency reserves.
the tabling of the Budget on 26 February 2014 and the engagement with the
Minister of Finance on 27 February 2014, the Finance Committees jointly held
public hearings on 04 March 2014. Submissions were received from National Union
of Metalworkers South Africa (NUMSA), Federation of Union of South Africa
(FEDUSA), South African Institute of Tax Practitioners (SAIT), South African
Institute of Chartered Accountants (SAICA), PriceWaterHouse Coopers (PwC), the
Manufacturing Circle, Business Unity South Africa (BUSA),
the Financial and Fiscal Commission (FFC),
Budget and Expenditure Management Forum (BEMF), Ernst & Young Advisory
Services (EY), Metope Investment Managers and PPC manufacturers.
report summarises the economic outlook; fiscal framework; revenue trends and
tax proposals; government debt financing and the key issues emerging from the
public hearings with the above-mentioned stakeholders.
The 2014 National Budget overview
Budget reflects on some of government achievements over the past two decades,
acknowledges the challenges that lie ahead and proposes plans to address these
challenges. Key amongst the achievements is the sound institutional framework,
which includes the Offices of the Public Protectors, Auditor General, the South
African Reserve Bank, the Independent Electoral Commission and effective and
independent courts. Strides had been made in providing access to education,
housing, water, electricity, sanitation and other basic services. The
challenges remain persistently high levels of unemployment, poverty and
inequality. The economy continues to grow below potential and some of the basic
services delivered are uneven and of poor quality. Government has adopted the
National Development Plan (NDP) as its long term framework for economic growth
and social development. The plan guides the allocation of public resources and
recognises the need to diversify the economy, raise export competitiveness and
partnerships to overcome some of the challenges identified.
budget priorities include investment in infrastructure, youth employment and
improved service delivery. Examples of NDP priorities that are directly funded
and supported over the medium term include building on existing partnerships;
Community Works Programme (CWP); support for smallholder farmers and small,
medium and micro enterprises; detailed expenditure reviews across government;
employment tax incentives, Expanded Public Works Programmes (EPWP), Special
Economic Zones (SEZs) and public infrastructure investment.
economy is not yet on the path to sustained recovery. World economy gathered
momentum in the second half of 2013, led by a recovery in the advanced
The recovery in the US has
prompted the US Federal Reserve to taper its quantitative easing programme.
Growth in Europe, South Africas major trading partner, remains subdued. Growth
in emerging market and developing economies remain robust. Increased financial
market and capital flow volatility remain a concern given recent US tapering.
prudent macroeconomic framework cushioned the South African economy against the
global economic turmoil and enabled it to continue growing. Fiscal imbalances
remain but output and employment have returned to pre-crisis levels. Public
finances appear sustainable and debt levels appear manageable over the medium
term. A widened current account deficit remains a concern until exports
increase and investment flows strengthen. The flexible exchange rate regime
that South Africa adopted has helped to absorb the external shocks, amongst
other things. The inflation outlook has deteriorated and rising interest rates
will increase the cost of borrowing.
the risks that emerged, government is maintaining its expenditure ceiling, with
no additional funds added to total spending. The proposed 2014 Budget framework
makes provision for R1.25 trillion rand in the 2014/15. The Budget emphasises
the need to contain costs and improve efficiencies across government. The
framework balances continued growth in spending and fiscal consolidation.
It is expected that the spending reviews and
forensic investigations will help to cut waste and increase efficiency across
all spheres of government.
South Africas fiscal framework remains grounded in
a sustainable countercyclical approach to managing revenue and expenditure. The
budget deficit is expected to narrow in 2013/14 as a result of governments
expenditure ceiling and strong revenue collections. Tax proposals for the 2014
Budget continue to prioritise economic growth, job creation and generating
sufficient revenue to finance government spending.
economic developments and outlook
to the International Monetary Fund (IMF) global economic activity and world
trade strengthened in 2013, particularly in the United States (US) and the
United Kingdom (UK). The key drivers of improved activity had been attributed
to export rebound in emerging market economies and higher inventory demand in
developed economies. Global economic growth registered 3 per cent in 2013.
expects global growth to increase from 3.0 per cent in 2013 to 3.7 per cent in
2014, averaging 3.9 per cent in 2015, largely on account of recovery in
advanced economies. The outlook for the Euro zone remain fragile and uneven,
particularly economies in the periphery where the risk of deflation, strong
fiscal consolidation and weak banking sectors are constraining the recovery.
Growth in the Euro area is projected to strengthen to 1 per cent in 2014 and
1.4 per cent in 2015. Recovery will be uneven, with more modest growth for
economies under stress held back by high debt and financial fragmentation.
States is expected to grow at a rate of 2.8 per cent in 2014, up from 1.9 per
cent in 2013 and growth is projected at 3 per cent in 2015. Growth will be
supported by final domestic demand and in part by a reduction in the fiscal
drag as a result of the recent budget agreement. The US growth is being driven
by a recovery in the housing market and robust private sector demand.
in emerging markets is expected to increase to 5.1 per cent in 2014 and 5.4 per
cent in 2015. Economic activity in sub-Saharan Africa remains robust, having
averaged 5.1 per cent in 2013, with growth projected to increase to 6.1 per
cent in 2014 and moderate slightly to 5.8 per cent in 2015.
Federal Bank has begun the process of cutting back in quantitative easing,
signalling a recovery in the US. These developments have implications for
emerging market and developing economies such as sharply depreciating currencies,
slowing growth, rising
inflation, significant current account and fiscal deficits and the
in advanced economies will translate into moderately higher demand for South
African exports. Slowing growth in China and its shift away from investment led
growth may lower the prices of South Africas commodity exports. Volatile
capital flows have contributed to Rand depreciation, putting upward pressure on
South Africas net portfolio
flows fell to R24.3 billion in 2013 compared to R88.8 billion in 2012.
financial market and capital flow volatility remain a concern in emerging
economies, given the US tapering in early 2014. There is a need to manage the
risks of potential capital flows reversal. Economies with domestic weaknesses
and larger current account deficits appear particularly exposed. Some of these
risks could have implications for the South African economy through trade,
capital flows and currency volatility. Domestic risks include further delays in
introducing new infrastructure, protracted labour disputes and more pronounced
inflationary pressures associated with the depreciation of the Rand.
Major risks to the global economic outlook are the reduction in US
monetary stimulus; high debt levels in China, the rising level of government
debt in Japan, very low inflation in advanced economies, particularly the Euro
area and high current account and fiscal deficits in a number of emerging
Despite the expected strengthening
of activity, global priorities remain ensuring robust growth and managing
Given these risks,
monetary policy stance should stay accommodative while fiscal consolidation
continues (IMF 2014). The FFC sees the Budgets 2014 subject to the Euro area
sovereign debt crisis, the US fiscal cliff and quantitative easing by the
Federal Reserve and slowing emerging markets growth.
African economic performance and outlook
domestic economy is growing at a moderate pace but continues to perform below
its potential. Over the medium term, new power plants and transport
infrastructure will lift constraints to output; stronger global recovery will
support exports and growth in sub-Saharan Africa will promote expanded trade
and investment. The macroeconomic framework is resilient, supported by healthy
public finances. Gross Domestic Product (GDP) growth is projected to improve
from 1.9 per cent in 2013 to 2.7 per cent in 2014 and to 3.5 per cent in 2016.
proposes improvements in skills and education, investment in Research and Development
(R&D) to unlock growth potential. The Commission further proposed that in
order for government to address the negative sentiments of credit rating
agencies, the economic growth rates set should be achieved. This could be
achieved through full and effective implementation of the infrastructure
programme and stabilising the public debt to GDP trend.
Manufacturing Circle is of the view that growth imperatives and stabilisation
of debt in 2016/17 will be manageable only if confirmed additions to generation
capacity and shale gas exploration can be expedited and if government could
improve implementation of infrastructure investments.
concerned that National Treasury has for a number of years, forecast higher GDP
growth rates than actual performance. Inflation had also been forecast lower
than the actual outcomes. BUSA believes that governments forecast for GDP
growth for 2014/15 fiscal year is high. SAICA is of the view that projected
growth forecasts of 2.7 per cent and 3.5 per cent in 2014 and 2016,
respectively, as optimistic given that growth declined from 2.5 per cent in
2012 to 1.9 per cent in 2013.
noted that the IMF forecast the SA economy to grow at a rate of 2.8 per cent in
2014 and 3.2 per cent in 2015 in light of the global and domestic economic
developments. The South African Reserve Bank (SARB) adjusted its growth
forecasts downwards relatively in line with the IMF. FEDUSAs concern is that
National Treasurys growth forecasts are not in line with this and appear to be
to the National Treasury, risks to the domestic outlook include delays to the
introduction of new infrastructure, protracted labour strikes and more
pronounced inflationary pressures associated with the depreciation of the Rand.
The FFC identified key domestic risks as labour unrest, inadequate education
and skills base, insufficient infrastructural investment and service delivery,
perceptions of rising corruption and stress on consumers to cope with increased
inflationary pressures. The Commission proposed that, to address the labour
unrests, Government should consider establishing levers that serve to
strengthen accountability of both employers and unions in the collective bargaining
The SAIT proposed four pillars needed to stimulate
economic growth in South Africa, namely, e
the stimulation of the small business sector that has the capacity to reduce
unemployment, foreign direct investment that is also crucial to stimulate jobs
and build infrastructure in the country, innovation and investment in Research
and Development that is needed to achieve innovation.
Review 2014 expects real growth in gross domestic expenditure to pick up from
2.8 per cent in 2013 to 3.4 per cent in 2015. Growth in household consumption
expenditure moderated to an estimated 2.7 per cent in 2013, down from 3.5 per
cent in 2012. Growth in household consumption depends on the economys ability
to create jobs, real disposable income growth, household indebtedness and
consumer confidence and the interest rate environment. Growth in real household
consumption expenditure is projected to increase from 2.7 per cent in 2013 to
3.4 per cent in 2016, supported by stronger employment growth prospects and
reduced household debt levels.
on year inflation rate as measured by the Headline Consumer Price Index
averaged 5.7 per cent in 2013,
from 5.6 per cent in 2012. The Rand exchange rate depreciation led to a revision
of the Headline CPI, which is now expected to breach the upper end of the
target band in 2014.
Headline CPI is
expected to average 5.9 per cent in 2015 as weaker Rand translates into higher
petrol and food price and puts pressure on wage demands.
increased the interest rates by 50 basis points in January 2014 in response to
deterioration in inflation outlook. The weakness of the Rand in part follows
the general emerging market phenomenon but it is also reinforced by other
factors such as declining terms of trade and on-going labour disputes. The Rand
depreciated by 17.6 per cent against the US Dollar in 2013. In the short term,
the weaker exchange rate poses a significant risk to the inflation outlook. A
sustained real depreciation could provide a significant boost to export
outlook for investment expenditure remains positive over the medium term.
Growth in real Gross Fixed Capital Formation is forecast to grow at a rate of
4.2 per cent in 2014 reaching 6.0 per cent in 2016 in line with the global and
1: Macroeconomic projections 2009 to 2016
Final household consumption
Final government consumption
Gross fixed capital formation
Gross domestic expenditure
GDP at current
prices (R billion)
Current account balance (% of GDP)
Budget Review 2014, National Treasury
trade deficit widened the current account deficit (a source of external
vulnerability) to an estimated 6.8 per cent of GDP in the third quarter of
2013. Stronger export growth was offset by import growth. Along with
deterioration in the terms of trade (largely driven by commodity price
movements) these factors exerted pressure on the current account. The current
account deficit is projected to narrow from 6.1 per cent in 2013 to 5.5 per
cent in 2016 as export growth improves.
volumes recorded strong growth in 2013, led by machinery and appliances and
oil. Growth in imports is projected to rise from 5.3 per cent in 2014 and reach
7 per cent of GDP in 2016 as demand recovers. Export growth is expected to
increase from 5.6 per cent in 2014 to 7 per cent in 2016.
From the production side of the economy,
growth was supported by favourable yields in agriculture, steady growth in
financial and business services, telecommunications, transport and civil
construction. Growth in the mining sector remained volatile in 2013 as
industrial action, maintenance and other disruptions affected production. The
mining sector is expected to remain under pressure following stoppages in the
major platinum mines and the risk of these disruptions spreading to gold mines.
Manufacturing production struggled to gain momentum in 2013, registering growth
of 1.3 per cent. The Manufacturing sector also experienced maintenance
stoppages and strikes in the motor vehicles and parts sub-sector. A broader
economic recovery depends on improving the operating environment in mining and
of job creation lags behind growth in the labour force, contributing to
persistently high levels of joblessness. The rate of unemployment declined to
24.1 per cent in the third quarter of 2013, from 24.5 per cent a year earlier.
Between September 2012 and September 2013, the economy created 14 000 jobs
in the formal non-agricultural sector. Job losses in mining and manufacturing
were offset by gains in the community, social and personal services sector.
Moderate employment gains are expected over the medium term. The private sector
will continue to be the major contributor to job creation. The public sector
will continue to support job creation through initiatives such as EPWP, CWP,
Employment Tax Incentive, Jobs Fund, National Youth Service Programme and
view is that the 2014 Budget should have started the implementation of
structural reforms to grow the economy and create jobs. To address unemployment
BEMF proposed that government implements the Basic Income Grant to inject more
funds in communities to stimulate demand and entrepreneurial initiatives among
poor communities. This organisation suggests that government should promote the
Green economy. It also recommended that more investment be made to low carbon
economy by investing more into the public transport system, energy saving homes
and buildings, encourage local food production and small scale organic farming
remain concerned that the unemployment rate according StatsSA persists to be
high at 24.7 per cent in the third quarter of 2013, with youth unemployment
standing at 55 per cent. NUMSA
is pleased with
the announcement that the rollout of the infrastructure programme accompanied
by programmes to support the local manufacture of components, ranging from
buses to energy components in order to support this industry and create more
Fiscal policy and outlook
South Africas fiscal framework is grounded in a
sustainable, countercyclical approach to managing revenue and expenditure over
the medium term. Government will balance continued support for economic
recovery with fiscal consolidation. Key social and economic
programmes will be maintained, complemented by
efforts to improve value for money. Spending will be well contained over the
The fiscal outlook for the years ahead is challenging. With the onset of
the 2009 recession, government was able to use the fiscal space built in
preceding years to support the economy. Low international interest rates made
it relatively cheap for government to finance its borrowing requirement.
Moderate domestic inflation limited cost pressures on public sector budgets and
rising commodity prices supported government revenues.
The changed environment has significant implications for the fiscus.
Rising global interest rates, rand depreciation and weaker commodity prices
have significant fiscal implications. Projected debt service costs for 2014/15
are R5 billion higher than estimated in October 2013. Economic growth remains
below potential and the fiscal space has been eroded by rising debt. The terms
of trade deteriorated and are unlikely to improve over the medium term. A
weaker outlook for commodity prices has contributed to a downward revision of
estimated tax revenue in 2015/16.
Rand depreciation has led to rising cost pressures, including the
compensation budgets. Compensation accounts for almost 40 per cent of
consolidated non-interest expenditure. It is projected that over the next three
years, this item would grow by 1 per cent on average. If inflation exceeds
current forecasts, the purchasing power of budgeted allocations will decline,
while compensation budgets will automatically increase in terms of current
public sector wage agreement. The FFC cautioned that the three year wage
bargaining cycle is coming to an end and that government should plan to ensure
moderate growth over the medium term.
Government is committed to maintaining an explicit nominal expenditure
ceiling, while preserving the value of the social wage; reducing the budget deficit
to stabilise debt; and improving the quality of spending and reducing waste.
The ceiling commits government to spending limits of R1.03 trillion in 2014/15,
R1.11 trillion in 2015/16 and R1.18 trillion in 2016/17. Expenditure growth has
been substantially reduced
Countercyclical response to global economic crisis resulted in large
The deficit remained
persistently high as revenue and growth forecasts were repeatedly revised
downwards. The budget deficit is expected to narrow from 4.0 per cent of GDP in
2013/14 to 2.8 per cent of GDP in 2016/17.
The BEMF suggested
that the budget deficit be reviewed and recommends that government should allow
the budget deficit to increase to 6 per cent from the current 4 per cent.
According to the Forum, the additional 2 per cent will inject more funds in the
fiscus to fund long term social projects
Net debt is projected to stabilize at 44.3 per cent of GDP in 2016/17.
Government responded by limiting expenditure growth, trimming the departmental
budgets and reducing the contingency reserve. The contingency reserve
allocation is reduced by R3 billion and R4 billion in 2014/15 and 2015/16,
The FFC cautioned that reducing the contingency reserves further is
likely to increase the risk of having too low reserves should South Africa
experience any shocks.
view is that over the next two years, this will limit governments ability to
accommodate unforeseeable and unavoidable expenditure and to fund emerging
priorities. Reprioritisation will be the defining feature of the budgeting
during such a period.
SAICAs view is that
wasteful expenditure should be reduced and that cost controls across government
should be implemented.
also noted that an important progress has been made to reduce wasteful spending
but more needs to be done, and that a substantive review of government spending
is required. SAIT is of the view that linking government priorities to specific
programmes in a more direct manner and holding responsible persons accountable
for their actions is a necessity.
The 2014 Budget also maintains tight controls of goods and services
budgets. Several steps had been taken to support spending efficiency including
expenditure reviews and cost containment measures. BUSA welcomes the fact that
real growth in public spending is forecast to increase from 2 per cent in 2013
to 2.8 per cent in 2014 and then reduce to 1.8 per cent in 2016.
consolidated fiscal framework estimates budget deficit of 4.0 per cent of GDP
in 2013/14 compared with 4.2 per cent projected in October 2013. Stronger
revenue growth and under spending by national departments, provinces and public
entities led to a narrower deficit. The deficit is projected to narrow to 2.8
per cent in 2016/17 as the economic growth and revenue collection pick up pace.
The FFC is of the view that the 2014 budget deficit reduction is aggressive
relative to the October 2013 forecasts and that the reduction could be enough
to avoid further downgrades to the sovereign credit rating.
consolidated fiscal framework makes R1.25 trillion available for spending in
2014/15, R1.35 trillion in 2015/16 and R1.45 trillion in 2016/17 financial
year. Expenditure growth has been substantially reduced. Revenue of R1 099.5
trillion in 2014/15, R1 201.3 trillion in 2015/16 and R1 324.7
trillion in 2015/16 financial year has been set aside. The fastest growing item
of the main budget expenditure is debt service costs. Projected debt service
costs for 2014/15 have increased by R5 billion since October 2013. This
reflects exchange rate depreciation, higher inflation and the increase in
interest rates by the Reserve Bank. Debt outlook remains sustainable and debt
service costs stabilise in 2015/16, and begin to decline as a share of GDP.
noted that the fastest-growing item of main budget expenditure is debt-service
costs and that the projected debt-service costs for 2014/15 have increased by
R5 billion since the October 2013 Medium Term Budget Policy Statement. SAICA is
of the view that this reflects exchange rate depreciation, higher inflation and
the increase in the Reserve
from 5.0 per cent to 5.5 per cent in January 2013.
Table 2: Consolidated fiscal framework,
2010/11 to 2016/17
Rand billion/ percentage of GDP
Source: 2014 Budget
Review, National Treasury
2014 projects total consolidated government revenue of R 887.8 billion in
2012/13 (R16.7 billion less in taxes), R985.7 billion in 2013/14 (revised down
from R1.005 trillion in October 2012) and R1.091 trillion in 2014/15 compared
to R1.118 trillion previously predicted. Total consolidated budget revenue is
expected to stabilise at 29 per cent of GDP over the medium term. Governments
tax revenue is highly dependent on the developments in economic conditions
globally and domestically.
revenue has performed well in 2013, leading to an upward revision of
consolidated current revenue by R11.4 billion, since October 2013. The
depreciation of the Rand has boosted profits in some sectors, leading to
buoyant corporate income tax receipts. Above inflation wage settlements have
sustained personal income tax and strong imports have boosted customs revenue.
Compensation accounts for 39.5 per cent of consolidated non-interest
spending in 2013/14, down marginally from a high of 39.7 per cent in 2011/12.
Transfers and subsidies account for 29.9 per cent of consolidated non-interest
spending. Capital spending is the fastest-growing component of non-interest
expenditure over the three-year period, followed closely by capital transfers.
the medium-term cost containment measures will be vital to ensure fiscal
discipline in government. Strengthening oversight in government spending will
play a key role in ensuring efficiencies and value for money.
As part of strengthening oversight, National
Treasury in partnership with the Department of Monitoring and Evaluation has
launched a series of expenditure reviews to provide greater understanding of
performance and identify ways to improve value for money.
reforms, through the office of the Chief procurement Officer, will be necessary
to simplify procurement procedures, strengthen accountability and improve
governments ability to detect corruption and maladministration. Improved
service delivery will be achieved through efficient and effective spending of
welcomed proposals to establish a Chief Procurement Office and the
establishment of the Parliamentary Budgetary Office (PBO), which will assist
Parliament in ensuring that fiscal
to governments five priorities of education, health, rural development and
agrarian reform, taking forward the fight against crime and creating decent
work. NUMSA further recommended that given the tight financial situation the
country finds itself in, the Ministers proposals to combat excessive
consultancy fees should be reinforced by a thorough evaluation of all projects
Manufacturing Circle expected the National Treasury to announce, amongst
others, a full fiscal review, support for innovative industrial policy to help
dynamic local manufacturers to grow and enforcement of local procurement to
grow the market for manufactured goods. The Manufacturing circle also expected
an announcement of initiatives to cut administered costs to enhance
manufacturing competitiveness. These measures are necessary to ensure that
infrastructure maintenance and provisioning is funded, financed and costs are
recouped efficiently; that price setting regulations and discount options for
energy and other utilities are on par with competitor economies.
proposed that to fight corruption and poor financial management the government
should implement Auditor Generals recommendations and use Municipal Finance
Management Act (MFMA) and Public Finance Management Act (PFMA) to ensure those
found guilty of corruption are held responsible.
to GDP is estimated at 33.0 per cent in 2014/15, narrowing to 31.9 per cent in
2016/17. The wage bill has been one of the major concerns in government
expenditure over the past year. The Minister of Finance, National Treasury and
put more emphasis on government
departments to ensure that their personnel are within budget. Slower wage bill
growth and robust expansion of capital budgets will result in a moderate
improvement in the composition of spending by 2016/17.
BUSA sees the limited government wage bill
reduction as prudent given the above inflation increases in the past years and
urges government to instil discipline in negotiating increases.
FFC welcomed and noted the idea of setting an expenditure ceiling as effective
controlling expenditure and maintaining
stability. In light of this, the Commission proposed that government should
complement these with research on the scope of the ceiling, setting of the
precise level of the ceiling and the assessment of government performance at
all spheres against the ceiling and progressive realisation of constitutional
mandates. In addition to that government should put the ceiling approach in
legislation such PFMA and MFMA.
noted the Ministers observation that in order to maintain the expenditure
ceiling, additional allocations to priority areas and upward adjustments to the
public-sector wage bill have been achieved through reprioritisation across
net debt as a share of GDP continues to grow, but is expected to level off at
44.3 per cent of GDP in 2016/17. Global interest rates are expected to rise but
domestic rates on new debt issuances remain low by historical standards. Total
government gross debt as a percentage of GDP reached 45.8 per cent in 2013/14,
which is the highest level since the 1998/99 financial year. Gross foreign debt
however remains low at 4.3 per cent of GDP. About 90.7 per cent of gross
government debt is long dated domestic debt, which lowers the overall risk
profile of government debt.
stabilises, government is committed to rebuilding fiscal space by reducing the
ratio of government debt to GDP.
plans to rebuild fiscal strength and reduce public debt in order for the fiscus
to respond well to any negative global economic shocks. Strong public finances
would also enable government to invest more on social services and
infrastructure. This will be done by reducing spending on debt servicing by
reducing governments net debt position over time and switching to longer dated
debt instruments. South Africas debt stability will depend on increased
economic growth, as well as fiscal balance and restraint. Sound fiscal policies
and improved economic growth will enable proper debt servicing and stability,
thus enabling the government to channel funds to priority service delivery
factors impact directly on increasing government debt. These include a weaker
rand exchange rate that has pushed the value of foreign debt up; an increase in
inflation that has led to an increase in the value of inflation linked debt;
and the deterioration in economic growth has also increased the debt-to-GDP
ratio. All these factors will impact directly on the countries ability to
reach its objective to stabilise debt in the outer years of the MTEF.
the 2013/14 MTBPS, total gross national loan debt was estimated at R1.5
trillion and was expected to grow by more than 30 per cent as a percentage of
GDP over the MTEF, while gross foreign debt was expected to increase by more
than 5 per cent as a percentage of GDP over the next three years.
public sector debt stood at 57.3 per cent of GDP in 2012/13 and it is expected
to grow more slowly over the medium term. The public sector borrowing
requirement is estimated at R227.2 billion or 6.6 per cent of GDP in
The main budget deficit
declines over the medium term, borrowing by state owned companies is projected
to decline while local government borrowing remains low. Public sector
borrowing requirement is expected to narrow to 4.3 per cent of GDP in 2016/17.
main concern is that South Africas debt is expected to increase from the 39.7
per cent for the 2013/14 year to 41.9 per cent in the 2014/15 year.
Having noted that the
fastest-growing item of main budget expenditure is debt-service costs,
view is that the key for stability is that South Africas sovereign credit
rating does not move downwards.
costs of servicing government debt are influenced by the volume of debt, new
borrowing and market variables such as interest, inflation and exchange rates.
Debt service costs continue to grow over the medium term. The domestic bond
market will remain the primary source of debt funding.
Risks to the fiscal outlook include economic
uncertainty and a new round of public sector wage negotiations. If inflation
remains stable, faster growth would enable government to attain its fiscal
objectives. Deterioration in the economic outlook would require government to
consider additional expenditure and revenue measures to ensure fiscal
sustainability. Growth in employee compensation has slowed over the past two
years but higher than expected inflation would add to the wage bill. A further
deterioration in the inflation outlook, would add additional pressure on the
Revenue trends and tax proposals
South Africa has built a progressive tax system
founded on the principles of equity, efficiency, simplicity, transparency and
Consolidated budget revenue consists of tax revenue
net of Southern African Customs Union transfers, departmental revenue, mineral
royalties, social security fund revenue and provincial and public entity own
Total tax revenues have remained buoyant in 2013/14 and the revenue
estimate presented in last years budget has been revised upwards by R1
billion. Nominal total tax revenue declined from 27.6 per cent of GDP in
2007/08 to 24.4 per cent in 2009/10 as a result of the 2009 recession. Tax
revenue is expected to recover to 25.9 per cent of GDP in 2013/14, supported by
strong growth in corporate income tax and customs duties. Nominal total tax
revenues are estimated to grow at an average of 10.4 per cent per year over the
medium term, reaching 26.5 per cent of GDP in 2016/17. Optimistic tax revenue
collections, however, depend on improved tax compliance and strong economic
The revised tax revenue estimate is R85.2 billion or 10.5 per cent
higher than actual tax revenue in 2012/13, and R4 billion above the estimate
presented in the October 2013
Term Budget Policy Statement
. The marginal upward revision for 2013/14
compared to the 2013 Budget is the result of strong growth in corporate income
tax and customs duty revenues, revised upwards by R7.1 billion and R3.2 billion
respectively. Revenue has been revised marginally downwards in 2015/16,
reflecting a weaker economic outlook.
This is the first time since the 2009 recession that nominal corporate
income tax revenues will exceed the 2008/09 peak of R165.5 billion. Personal
income tax has also been revised upwards by R2.7 billion compared with the 2013
Budget estimates. This positive performance has been offset by downward
revisions in dividends tax revenue (R5.9 billion), VAT (R3.7 billion), the fuel
levy (R1.7 billion) and excise duties (R2.3 billion). Fuel levy revenues have
been revised downwards mainly due to increased diesel refunds. Mineral
royalties are expected to generate R6.5 billion, about R600 million above the
PwC noted that tax revenue as a percentage of GDP continue to rise and
are projected to continue to rise towards the 2007/08 peak of 27.6 per cent
over the medium term. It cautions that a continued rise in the level of
taxation may not be sustainable in the long term and that ideally the level of
taxation should be reduced over time to promote economic growth. Contrary to
PwCs views, BEMF recommends that tax revenue as a percentage of GDP should be
increased to 30 per cent to raise additional revenue.
Tax proposals for the 2014 Budget continue to prioritise economic
growth, job creation and generating sufficient revenue to finance government
spending in line with the National Development Plan (NDP) objectives of
expanding the economy and reducing unemployment.
main tax proposals for 2014/15 include:
Personal income tax relief of R9.3 billion;
Measures to encourage small enterprise
Clarity on valuation of company cars for
fringe-benefit tax purposes;
Reforms to the tax treatment of the risk
business of long-term insurers;
Amending the rules for VAT input tax to
combat gold smuggling;
Increases in fuel and excise taxes;
Measures to address acid mine drainage; and
Adjustment of the proposed carbon tax and its
alignment with desired emission-reduction outcomes to be identified by the
Department of Environmental Affairs.
Direct taxes on
income tax relief compensates for the effects of inflation, which pushes some
individuals into higher tax brackets. About 69 per cent of taxpayers have
taxable incomes below R250 000 per year. This group will receive 39 per
cent the total amount of tax relief that arises from the increase in the
rebates and income tax brackets. Other direct taxes on individuals include
medical tax credits, tax preferred savings accounts and retirement savings
reforms. Retirement fund taxation reforms provide additional relief and
encourage savings, while tax preferred savings account is a measure to
encourage household saving.
commended the Minister of Finance for reinforcing the need for individual
retirement savings and look forward to more information to be released around
the tax efficient savings vehicles to be implemented in 2015.
SAIT is, however, disappointed that annual interest
exemption has not been increased especially considering the recent increase in
the interest rates.
indicated that whilst the income tax brackets were adjusted, not enough was
done to compensate for wage inflation in the mining, manufacturing,
construction, retail, logistics, and finance sectors. This resulted in
individual tax burdens creeping up slightly.
Ernst & Young is grateful
Minister of Finance did not increase tax rates for individuals, but cautions
that the economy need revenue for the increasing funding needs and that
expenditure must be brought under control if this trend is to continue. FEDUSA
also welcome Personal income tax relief of R9.3 billion that was granted to
individuals and noted that this relief was relatively evenly distributed across
taxpayers at all income levels and essentially compensated for the effects of
is of the view that encouraging foreign investment is one of the key aims of
the NDP as foreign direct investment activities will assist in broadening the
South African tax base as well as stimulating employment. SAIT is concerned
that a high corporate tax rate is unlikely to encourage this type of
investment, and although South Africa has reduced its company tax rate over the
last few years, global trends suggest that the rate is still relatively high
compared to other countries.
supports the Retirement savings reforms proposed in a form of revisions to the
retirement fund lump-sum withdrawal tables as these changes will effectively
promote retirement savings and the benefits that flow there from. However, they
are disappointed that no adjustments to the monetary cap of R350 000 on
deductible contributions to retirement funds were proposed. For that reason,
PwC views the monetary cap as a discouragement to retirement savings and will
act as an absolute limit that individuals contribute to retirement funds.
of the view that the review of the tax-preferred savings accounts, first mooted
in the 2012 Budget Review as a measure to encourage household savings, will
proceed, but unfortunately the budget provides no information other than what
was previously announced. SAICA believes that tax free savings accounts should
be implemented with effect from 1 March 2014.
Ernst & Young
welcomes the introduction of a tax friendly savings regime for
tax preferred savings
also in support of the last years legislative attempts
steps to unify the retirement regime with revised percentage limits.
Ernst & Young views
40 per cent
taxable limit for interest deductions for foreign owned SA subsidiaries as
problematic, and should be addressed despite silence in the budget. The
proposed implementation date of January 2015 should be changed. PwC also
support the tax preferred savings and investment accounts but advocate that
consideration be given to increasing the annual and lifetime contribution
limits in order to further incentivise savings.
noted new amendments to tax that further define equity
and debt instruments and understand the rationale behind proposed amendments,
however, these amendments might have unintended consequence to Property Fund
Industry. This was acknowledged in the relief given, but only to the big
According to Metope
Investment Managers, flow through of income principles is important in the
Property Industry for a number of reasons, amongst others; it enables pension
funds to invest in property funds which encourage savings and investment in
income generating assets.
removing flow through of income principles will make property a relatively
unattractive investment class.
important for South Africa, because increasing its property market size will
increase liquidity in the sector and attract foreign investment. This in turn
will result in funding of new developments and greater infrastructure
development for the country.
to the Unlisted Property Funds Working Group, the negative impacts of Section
d)(i) and 8FA(3)(d)(i) are: elements of protectionism
which might crowd out smaller businesses or funds; existing players seriously
may be affected by these changes; e
investors who may have geared themselves, may no longer offset income earned
against interest payable and
n the current environment incubator funds it is very difficult to set up
and bring to market/listing.
Managers proposed that the government should
level the playing field between pension funds and non pension fund
investors and remove clause 8F(3)(d)(i) and 8FA(3)(d)(i) from the Act. In the
interim, this Group gives its undertaking to work hard to find a mutual
satisfactory way of keeping the flow through of income principle for unlisted investors
with appropriate regulatory rules to maintain the required protection for
Direct taxes on businesses
taxes on businesses include small and medium enterprise development, employment
tax incentive, debt reduction rules, Public-private partnerships, long term
insurance risk policies and foreign reinsurance. Government wants to encourage
entrepreneurship through small and medium enterprise development as a way of
growing a sustainable economy. Accordingly, government provides tax relief to
foundations that promote entrepreneurial development through grants, make
grants received by small and medium sized enterprises income tax exempt and
enhance the flexibility of the venture capital company regime.
believes that, from an economic perspective, small businesses are an essential
part of South Africa and should be developed and encouraged while at the same
time keeping it simple. A long standing view of SAICA is that the tax
administrative and compliance obligations of small businesses are burdensome.
SAICA therefore welcomes the fact the budget review acknowledges that red tape
and bureaucracy are hindrances to doing business, especially for small and
medium-sized firms, and that government aims to streamline the regulatory
acknowledges that small businesses find it difficult to obtain finance in
general and acknowledges the introduction of reforms that would reduce
compliance costs and facilitate access to equity finance. SAICA also agrees
with the view of the Tax Review Committee that the lower tax rates for small
business corporations do not address tax compliance costs, and is pleased to
see this being subject to public consultation.
noted that small businesses are the engines of job creation, but despite this
sectors critical role in the economy, it is concerning that this sector faces
various challenges such as the regulatory and legislative burden imposed on
them in the form of tax legislation. SAIT welcomes the exemption of grants
received by small and medium-sized enterprises, regardless of the source of the
welcomes relief for small businesses from both a tax burden and tax
administration perspective but caution that other significant barriers remain,
most notably in the form of red tape and labour rigidity.
supports the shale gas initiatives, less carbon intensive electricity
production, water related infrastructure spending and tax measures recommended
by the Davis Committee to promote SMMEs.
With regards to the imported
e-commerce, Ernst & Young notes that
foreigners providing local e-commerce services will be required to
register for VAT but support the amendment related to individual consumers and
business to business as the services would be zero rated.
introduced the employment tax incentive on 01 January 2014 to help reduce youth
unemployment. Government will monitor implementation of the incentive and may
if necessary strengthen measures to protect workers from practices that abuse
Manufacturing Circle does not support the exclusive design of the Special
Economic Zones (EPZs) and is of the view that the incentives should be extended
to all compliant manufacturers to avoid market distortion and to enhance
overall economic competitiveness. BUSA sees promotion of EPZs as a way that
accelerates growth in these sectors and proposes that government expedites the
legislative process and extend EPZs to existing plants to encourage expansion
of domestic investment and exports.
welcomes the employment tax incentive and the reasonable intake of this in
and PwC proposes that the refund system related to the employment tax incentive
become effective as soon as possible as opposed to during the fourth quarter of
2014 and be expanded to the EPZs and specific sectors. SAICA welcomed the
government plans to expand the programme in the years ahead. SAIT acknowledges
that the benefit of the employment tax incentive is really meaningful for the
small business sector and welcomes the incentive.
welcomes the Incentive and hope this is a step towards decreasing unemployment
as it offers employers incentives to hire people between the ages of 18 29
years. The Federation encourages government to design the tax incentive scheme
for Special Economic Zones with great care to avoid unintended
BEMF is of the view that
employment tax incentive is a tax cut to big business and will not contribute
to increasing overall employment.
proposals on indirect taxes include increases in excise duties on alcoholic
beverages and tobacco products, inflationary adjustments to fuel taxes,
measures to address acid mine drainage and a comprehensive policy package to
address climate change and amending VAT rules to combat gold smuggling.
suggested that initiatives to reduce tax avoidance should be strongly supported
by government. In addition to th
at the government should
increase the number of basic goods which are VAT zero-rated and subject luxury
goods to higher rate of VAT.
Government proposes to increase the excise duties on alcoholic beverages
by between 6.2 per cent and 12 per cent in 2014. The specific excise duty rate
for traditional African beer will remain unchanged. Government proposes to
maintain this benchmark by increasing the excise duties on tobacco products by
between 2.5 and 9 per cent.
Government proposes to limit the increase in the general fuel levy in
line with inflation in 2014/15. PwC supports this decision. The proposed
increase of 12c/litre is less than the increase applied in 2013/14. The
proposed increase for the Road Accident Fund levy of 8c/litre is equal to the
adjustment in 2013/14.
Regulatory and other measures have been put in place to address the
serious environmental consequences of acid mine drainage. To complement current
efforts and ensure that the mining sector makes a fair contribution to
continuing acid mine drainage expenses, consultations will be initiated with
all interested parties on the best mechanism to use, such as an environmental
levy or equivalent instrument.
National Treasury and the Department of Environmental Affairs agree on
the need to align the design of the carbon tax and the proposed desired
emission-reduction outcomes. To allow for this process and ensure adequate time
for consultation on draft legislation, implementation of the carbon tax is
postponed to 2016. BUSA and PwC welcome the Ministers decision to delay
implementation of the carbon tax
for further consultation as a sensible one
in the current circumstances.
notes that innovation is an important factor to stimulate economic growth and
combat unemployment. According to SAIT, It was evident from the budget speech
that there was limited support by Government to the private sector in the form
of R&D tax deductions and R&D grants.
PPC recognises the need for a predictable and gradual transition to a
climate change resilient economy in South Africa and supports South Africas
national and international climate change objectives and obligations. However
the proposed carbon tax, in its current form, presents PPC with the following
key areas of concern:
Timing of the implementation
Structure and design of the tax formulation
Issues of clarity and certainty, and
Differentiating the cement industry from
other economic sectors
PPC argues that the Carbon Tax is premature due to the adverse economic
impact it will have on industry in the country, especially given the current
emerging market circumstances.
The carbon tax, as structured currently, will negatively impact PPCs
profitability. Initially PPC may be able to pass the cost of the carbon tax
onto the consumer. However this will not be sustainable in the long run because
the carbon tax will make PPCs products uncompetitive against imports from countries
that do not impose carbon taxes. This will result in the company eventually
having to absorb the cost of the carbon tax which may ultimately severely
impact the PPCs profitability and the viability of the business to operate.
PPC believes that the opportunity arising from the delay in implementing
the carbon tax until 2016 must be utilized as an opportunity for robust and
constructive stakeholder engagement and consultation. This is imperative in
order to ensure that the carbon design, alignment and enabling legislation is
sound and effective for differentiated sectors such as cement. Effective Border
Exchange controls related to the import of cement from countries that do
not impose a carbon tax are absolutely necessary
to protect coastal manufacturing sites from unfair competition.
Over the next few months, a newly designed case sourcing system will be
rolled out to improve internal efficiencies and compliance. Addressing
non-compliance within the tobacco industry remains a priority. During 2013, 15
entities were identified as non-compliant with up to R1 billion worth of
tobacco/cigarettes seized. Twelve criminal cases are being pursued.
Consequences for non-compliance will result in withdrawal of licences and more
National Treasury will conduct research, over the next two fiscal years,
on effective tax rates for companies in different sectors; review of the VAT
zero-rating provision for housing subsidies to eliminate practical anomalies;
review of how educational services and public transport are treated for VAT
purposes; review of the sustainability of the local government fiscal
framework; and a review of the taxation of cooperatives.
The FFC supports the establishment of the Davis Tax Committee to review
the countrys tax system as well as the range of environmental instruments
under consideration. PwC had concerns with the alignment of unemployment
insurance benefits and contributions, no adjustments to the monetary cap on
deductible contributions to retirement funds have been proposed and there was
no reference to the status of the proposed gambling taxes taxation of trusts in
the 2014 Budget. PwC has also raised concerns about significant loss of
resources in the legal tax unit at the National Treasury.
Having considered the 2014 National Budget and public
submissions, the Committee observed the following observations from
stakeholders, and furthermore the Select Committee on Finance amongst others, observed
FFC proposal that to achieve the projected economic growth need to be achieved
in order to dispel the negative view of the Credit Rating Agencies, the
government must address the leadership in labour markets, improve skills and
Committee wanted to know if the FFC had any interactions with the advisory
bodies such as the Parliamentary Budget Office and requested the FFCs view on
the PBO and how it can advance its support to Parliament. The Commission
indicated that it has been assisting the PBO in building capacity and that its
difficult to find suitable candidates with the relevant skills and that it will
take long for the office to be fully functional based on the Commissions own
FFCs support of the NDPs assertion that 10 per cent of GDP should be spent on
growth, given the positive economic relationship that exists between GDP growth
and infrastructure spending. The Commission cautioned about the weaknesses in
implementing the infrastructure programme;
is the FFCs responsibility, amongst others, to ensure the allocation of
resources, but lack of capacity hindered this and asked for the Commissions
intervention. The Commission view problems at local government as structural in
nature, requiring human resources with the right skills to address;
FFCs view on contingency reserves and debt forecasts as a percentage of GDP
beyond three years is that it is concerned that in an event of shocks, the
country would not have a buffer given the level of reserves. According to
international standards, debt optimality can reach 60 per cent as a percentage
of GDP, therefore SA at 44 per cent, is lower; Furthermore, fiscal deficit
narrowing is not sufficient, the economy should grow beyond 3 per cent to
stabilize debt level to pre-crisis level;
view on Credit Rating Agencies that the country should not panic and should not
make use of them as these agencies tend to hold South Africa ransom. The
Committee indicated that Credit Rating Agencies price the countries debt, and therefore
owned entities money had not been spent according to the 2014 Budget Review.
The Committee raised the issue around the degree of under spending and whether
it was as a result of labour unrests and contractors.
has social responsibility and could assist government to become more
productive. NUMSAs view was that the backlog on infrastructure cannot just be
blamed on the Union;
Circle is concerned about the Rands strength or volatility and that the
exchange rate volatility is but one of the problems that the sector faces;
Investment Managers proposal to get the smaller investors into the big property
market, which is that a framework be created for unlisted investors, with
rules, to protect the smaller investors;
difference between listed and unlisted investors in terms of business is that
whilst listed investors enjoy benefits such as power to get finance at good
rates, amongst others, the unlisted investors have no such advantages;
Budget Expenditure Monitoring Forum (BEMF) proposals include transition tax,
increased in social infrastructure, social solidarity tax,
taxation as a percentage of GDP, given the impact that these may have on the
economy. The Committee further encouraged the Forum to attend the individual
budget vote meetings in the fifth Parliament to raise their concerns;
view regarding the proposed carbon tax, tax relief and tax incentives for SMMEs
and that there were no tax provisions to support growth. PwC indicated that:
A reform of the tax
structure in terms of the level of taxation and tax mix is necessary;
Personal Income Tax,
Corporate Income Tax and the tax structure is out of sync with the
There is a need to shift taxes away from income to
It is not against the carbon tax but believe that a tax is
not the only solution that government should explore;
With regard to personal income tax relief, PwC expected
partial relief and is of the view that the surprise revenue collection from
Corporate Income Tax led to the relief;
As far as it is concerned, the employment tax incentive is
not available to SMMEs because if PAYE is not available therefore, the
incentive is not applicable.
concern about the number of vacancies at the National Treasurys legal tax unit
following 10 resignations of staff at senior level;
and BEMFs concern that the 2014 budget is not gender sensitive. FEDUSA
indicated that the budget should have addressed gender based violence and that
the European Union utilizes a toolkit to determine whether the budget is gender
blind or sensitive;
view on the contingency reserve is that given than only R4 billion had been set
aside for the current financial year, SA is exposed to shocks. There is also a
concern that these targets wont be met and proposed that government should cut
government expenditure, reduce corruption and address wasteful expenditure;
& Youngs view on e-commerce (making registration a minimum requirement)
and the number of users registered for turnover tax (10 000);
view that VAT be increased above 14 per cent and to compensate for the poor,
some basic items could be zero rated;
Committee observed that the recommendations made by the Tax Review Committee had
been incorporated into the 2014 Budget; and
Committee further noted that the bargaining cycle at the Public Service Cordinating
Bargainig Council (PSCBC) for government employees is coming to an end relating
to remuneration for public servants.
considered the 2014 Fiscal Framework and Revenue Proposals and conducted public
hearings, the Select Committee on Finance recommends that the House
the 2014 Fiscal Framework and
Select Committee on Finance further recommends as follows:
Treasury should brief Parliament on a quarterly basis on the Employment Tax Incentives
and monitor the implementation of this incentive to identify any unintended
consequences. National Treasury should share with Parliament some achievements
of this incentive (since it was promulgated into law) as well as detailed
progress made into the incentive;
Minister of Finance should develop further measures to enhance and monitor the
implementation of entrepreneurship, SMME development and sustainability,
increasing black participation in this sector, given the potential of small
businesses to create jobs;
Minister of Finance, together with other relevant government departments, should
prioritise the implementation, monitoring and evaluation of programmes that
target job creation;
Minister of Finance should report on the reduction in core spending plans, including
financing new policy initiatives from savings, efficiency gains and
reprioritisation over the next three years; analysis of personnel spending and
phasing out of projects that are ineffective or no longer aligned with policy
priorities. This report should be submitted within 90 days of the adoption of
this report by the House;
Minister of Finance should report on governments need to continue its strong
focus on rooting out corruption, improving the efficiency and effectiveness of
public spending and enhancing accountability of public officials with respect
to performance. This report should be submitted within 90 days of the adoption
of this report by the House;
Committee noted the expenditure review process and recommends that in addition
to that, National Treasury should enhance Monitoring and Evaluation programmes
in departments to track progress made in achieving government objectives at
policy level and report to Parliament;
Treasury should encourage other government departments to assess the relevance
of their programmes in terms of their efficiency and effectiveness in achieving
intended policy objectives and also consider discontinuing some and introducing
Committee supports the implementation of cost containment measures and recommends
that these measures are enforced in provinces and municipalities to encourage
other innovative means to contain expenditure synchronised with improved
service delivery. National Treasury should ensure that these measures are
enforced and should report to Parliament within 90 days of the adoption of this
report by the House;
Committee noted significant progress regarding the appointment of the Chief
Procurement Officer in the National Treasury, and the role played by National
Treasury in combating corruption. However, the establishment of this
directorate should be accelerated;
Treasury should strengthen support to local government to ensure successful
rollout of infrastructure and improved oversight. National Treasury should
furthermore share with the House the impact of its established partnership with
the Department of Monitoring and Evaluation on expenditure reviews to ensure
greater understanding of performance and value for money;
and National Treasury should simplify the process in order to fast-track
registration for VAT on e-commerce services and ensure all businesses in this
sector are registered as required by law;
provide Parliament with an analysis of infrastructure
spending as a percentage of GDP over the medium term and, where possible,
for the years beyond the MTEF. This analysis should be submitted within 90 days
of the adoption of this report by the House;
provide Parliament with an update on the timeframe for the
final implementation of the Special Economic Zones, including all
tax incentives that have been announced for these zones.
This report should be submitted within 90 days of the
adoption of this report by the House;
report back to Parliament on the budgeted surpluses
in the Unemployment Insurance and Workers Compensation Funds and the
options for handling them. T
his report should be submitted within 90 days
of the adoption of this report by the House;
The Minister of Finance should ensure that
National Treasury and SARS are adequately resourced, and should report to the
House on the vacancies and measures available to fill critical positions
specifically within the legal drafting unit. This report should be submitted
within 90 days of the adoption of this report by the House; and
should ensure that the 2014 Taxation Laws Amendment Bill makes provision for an
increase in tax deductable for employees from the announced R350 000 annual
ceiling, as contained in the 2013 Taxation Laws Amendment Bill.
Budget Expenditure and
Monitoring Forum (BEMF), The Peoples Budget Speech 2014,
Town, Parliament of RSA, 04 March 2014.
Business Unity South Africa,
(BUSA) Submission to the Standing and Select Committees On Finance
Fiscal And Revenue Proposals for 2014,
Town, Parliament of RSA, 04 March 2014.
Ernst & Young, (2014).
Budget Speech 2014
Commentary on tax proposals
Cape Town, Parliament of RSA, 04 March 2014.
of Unions South Africa, 2014 Budget submission to the Joint Standing and Select
Committees on Finance, Cape Town, Parliament of RSA, dated 04 March 2014.
Treasury, (2014), Medium Term Budget Policy Statement, Pretoria: Government
Printers, also available online at:
and Fiscal Commission, (2014), Briefing To The Standing And Select Committees
of Finance On The 2014 Fiscal Frameworks And Revenue Proposals, Cape Town,
Parliament of RSA, dated 04 March 2014.
P. (2014), National Annual Budget 2014s Speech, Parliament of RSA, Cape Town,
available online at:
, dated 27
Union of Mineworkers South Africa, (2014), NUMSA Response to the 2014/15
Budget, Cape Town, 04 March 2014.
PPC, submission to the Parliamentary hearings on the 2014/15
Budget, Cape Town, Parliament of RSA, dated 3 March 2014
Water House Coopers, (2014), Budget 2014 Tax Proposals, Cape Town, Parliament
of RSA, dated 04 March 2014.
African Institute of Tax Practitioners, (2014),
Call for comment
on the Fiscal Framework and Revenue Proposals: 2014 Budget
, Cape Town,
Parliament of RSA, 04 March 2014
South African Institute of Chartered Accountants,
SAICAs Comments on the Fiscal Framework and
Cape Town, Parliament of RSA, dated 04 March 2014.
The Manufacturing Circle, (2014),
Submission to the Standing and Select Committees on Finance on The Fiscal and
Revenue Proposals and Documentation regarding the 2014 National Budget, 04
Property Funds Working Group (Metope Investment Purchasers).
to the Finance Committee.
Cape Town, Parliament of RSA, dated 4 March
to be considered.
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