LIVE: Pravin Gordhan to deliver budget 2016

LIVE: Pravin Gordhan to deliver budget 2016

Finance Minister Pravin Gordhan is set to deliver what will probably be his most important budget speech yet.

Pravin Gordan suit_gallo
File photo: Gallo Images

Gordhan will present the national budget to Parliament Wednesday afternoon, under the glare of an economic downturn and a possible downgrade.

The finance minister is expected to implement austerity measures, as outlined by President Jacob Zuma in his State of the Nation Address, in an effort to prevent this.

Gordhan, who was reappointed to the finance portfolio in December after Nhlanhla Nene's controversial removal is, according to Efficient Group economist Dawie Roodt, expected to make some big decisions in this budget.

"These big decisions are, basically, about two things - where can cut spending and where can he get in additional revenue," Roodt said.

South Africa is staring down the barrel of a junk status rating and Minister Gordhan will have to make the right moves to show the credit rating agencies that South Africa is committed to economic growth, without cutting on the budget boost where needed, like student finding and social upliftment.

This is very likely to increase the burden on tax payers, with the possibility on an increase in personal income and sin taxes. 

Watch it live here:

Edited by Suné du Toit

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