Colen Garrow
Colen Garrow
argued cause central debt further growing levels rate remains stimulus
While it remains manageable, it can be argued that it is the rate at which debt levels are growing that may cause no further stimulus from the central bank.
bank cut exchange likely moral support
What the bank is more likely to do (than cut rates) is intensify its moral suasion in support of a more competitive exchange rate.
currency growth hold potential pressure reaching sector
Manufacturing will be under pressure because of currency strength. It will hold the sector back and (keep) growth from reaching its potential level.
battling crippled mining sector similar strong supply
Manufacturing is not the only supply sector battling a strong currency. Mining is being crippled by a similar problem.
corporate remains somewhat tax unchanged
From this perspective, it is somewhat disappointing that corporate tax remains unchanged at 29% and that STC also remains unchanged at 12.5%.
affordable costs cuts dependency earners housing income likely low middle personal tax welfare
Welfare and dependency grants, personal income tax relief, and cuts in those costs which would make housing more affordable for middle and low income earners are likely to buoy consumption expenditure, and manufacturing.
consistent controls deviate environment exchange national path rand remains strong treasury unlikely
While an environment in which the rand remains strong is always appropriate for something more creative, the National Treasury is unlikely to deviate from its consistent path of removing exchange controls gradually.
additional affordable appear budget collection costs cuts dependency earners exceeding finance fiscal housing income likely low middle minister national personal relief revenue tax welfare
It would appear that with revenue collection exceeding budget this fiscal year, additional tax relief may be forthcoming when Finance Minister Trevor Manuel unveils the national Budget for 2006/2007 on 15th February. Welfare and dependency grants, personal income tax relief, and cuts in those costs which would make housing more affordable for middle and low income earners are likely to buoy consumption expenditure, and manufacturing.
government situation thus
The situation as it is, is thus inequitable and will have to be addressed by government at some stage.
committee cycle easier provides reminder stance taken useful
The stance the committee has taken probably provides a useful reminder that the easier interest-rate cycle has bottomed.
balance budget despite fiscal good odd south
Despite the odd shortcoming, this Budget is on balance good. It entrenches South Africa's good fiscal record.
apart placing pressure rates yields
Apart from placing upward pressure on the yields in these markets, short-term rates may also respond, higher.
average bringing changed december forecast highly less previous
Interestingly, the forecast for December may be little changed from the previous month, around 3.7%, bringing the average for 2005 to less than 4.0%, a highly respectable figure.
amount currency exceed foreign funds government held limits offshore private situation taken thus vehicle via
In such instances, funds held offshore may potentially exceed the R750Ê000 ceiling, which limits the amount of funds which may be taken offshore via the vehicle of private foreign currency accounts. The situation as it is, is thus inequitable and will have to be addressed by government at some stage.