South Africa’s Budget Speech 2014

This year’s budget speech took place on the 26th of February 2014 and took various factors from previous years into consideration in order to formulate a clear plan for the future. Minister Pravin Gordhan acknowledged South Africa’s achievement in the last five years in light of the economic recession but emphasised that there is still a lot to do in order to achieve a new economic order and that this can only be achieved if the vision is shared by both South Africa’s leaders and its people. Minister Pravin Gordhan also stated that the global economic outlook remains unsteady with our country’s economy growing, albeit not as fast as previous years.

With this in mind, Minister Pravin Gordhan stated that we need to work together with labour, business and all stakeholders to move together in bold, new direction. This new direction focuses on factors that are important for transformation, that will create job opportunities, accelerate growth and build equality in South Africa. It was estimated that in order to make rapid progress in creating jobs and reducing poverty, South Africa’s economy needs to grow at 5% a year or more, and this can only be achieved with a clear vision and by working together.

Gavin Bacon, Owner of PATC

“If my clients obtain at least 5% growth in the new year, then they meet this projection which is “OK” but, with inflation leaning towards 6.5%, I am of the opinion that your business is in fact “going backwards”. My “rule of thumb” for targeted growth remains – at achieving at least 10%. If you can manage 12-15% – Great, anything above that – excellent / brilliant! Hard work, dedication and commitment can help achieve desired results. When times are hard – “get up earlier, go to bed later and work harder”. It WILL pay off in the end……” Gavin Bacon

This vision is planned to consist of various initiatives together with the implementation of the National Development Plan.

These initiatives will consist of: 216 000 houses being built and 905 000 houses being connected to electricity by the end of the MTEF period, an increase of children receiving child support grants to 11.4 million, 433 schools are to be built, an increase in support for entrepreneurs, small businesses and subsistence and small-holder farmers as well as an accelerated public infrastructure investment. These are a few of the initiatives envisioned that are focussed on growing South Africa’s economy and pushing us as a country forward.

This year’s budget seemed focused on a positive and clear future, one that would help our country grow, despite the still unsteady global economy.

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