The 2004/05 Budget lives up to expectations, said Nedbank’s group chief economist Dennis Dykes on Wednesday.
”It doesn’t divert too significantly away from what was expected,” Dykes said of Finance Minister Trevor Manuel’s Budget delivered to Parliament on Wednesday.
”It looks more like a holding Budget in that there has not been the scope to cut taxes.”
Dykes said the only ”surprise” was the talk of reviewing the taxation of mining companies.
”Although they are talking about a sales-based royalty system as opposed to a profit-based system which mining companies are asking for.”
The Budget deficit, which was put at 3,2% in the medium-term budget policy statement in November, was revised to 3,1%.
”So far the financial markets have taken it as being reasonably positive in that respect,” said Dykes.
He said the revenue side of the budget ”is as expected”.
”There were very small adjustments on personal taxes compared to previous years, which could be seen to barely take account of inflation.”
Dykes said there was also ”a bit more specific detail on spending on HIV/Aids, at R2,1-billion over three years.” — Sapa