THE SOUTH AFRICAN 2014 – 2015 BUDGET: MINISTER DANGLES CARROTS BEFORE ELECTIONS AND ATTEMPTS TO KEEP SPENDING ON TARGET DESPITE PRESSURES: BUT GAMBLES ON CIVIL SALARIES AND OTHER VARIABLES: SOME REFLECTIONS

Abstract

This paper looks at the South African 2014-2015 budget, as presented by the Finance Minister in the month of February, 2014. The budget assumes great significance on the basis that South Africa has been plagued by massive corruption, wasteful expenditure, the ineptitude of the government in respect to financial controls, excessive spending and therefore, escalation of borrowing, from financial institutions, the massive proliferation of doling out grants to citizens, devastating salary rises owing to civil unrest, tax relief for small businesses, citizens and other fiscal variables. Its projected growth of 2.5 percent did not materialize in the last budget year and the economy grew only by 1.8 percent. It's projection for the 2014-2015 budget year, has been set at an unrealistic 3.5 to 5 percent growth target. Analysts believe and project that economic growth will not exceed 2 to 2.5 percent. The paper amidst these issues also analyses the Finance Minister's misrepresentation of the true state of the country's health system within the ambit of his budget announcements. It also assumes significance on the basis that the country goes to national elections on the 7th of May, 2014 and, therefore, the Minister had to tread cautiously, in order to appease the country as a whole and not politicians alone. He was forced to project a forced conservative balancing act, on the basis that a new government will take office in June of 2014 and possibly, this budget was the last budget of the current Finance Minister. The paper therefore attempts to give a balanced view on the 2014/2015 budget, as presented by the Minister and discusses some consequences for the country, in the overall narrative of the paper.