ESKOM FACING CASHFLOW TROUBLE – THEN STOP SPENDING MONEY ON BONUSES

Eskom spokesman Khulu Phasiwe said the firm’s sales growth had been muted while its operating cost was very high and its tariff for the current financial year was low. South Africa’s scandal-plagued power utility Eskom said on Monday it was not insolvent but was facing serious liquidity issues and would be in “trouble” if the […]
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Treasury senior official calls it quits as Zuma takeover looms

Michael Sachs, the head of the budgeting office at the national treasury, has reportedly resigned because of interference in its budgeting process by the presidency. The Business Day newspaper reported on Monday morning that “a joint team from the treasury and the Office of the president” are searching for R40-billion in expenditure cuts from the […]
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How you will pay for Zuma’s free education plan

The government is considering drastic budget cuts to fund free higher education, including cutting social grants, freezing the roll-out of RDP houses and increasing taxes. With the country facing an unpre-cedented R50.8‑billion revenue hole, a treasury document has been put before President Jacob Zuma by the presidential fiscal committee, outlining possible areas where budgets could […]
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SARS desperate – goes after taxpayer who owes R0.49

SARS is getting desperate after suffering huge shortfalls, and is now auditing a large portion of taxpayers who need to receive refunds. This is according to the Rapport newspaper, which spoke to tax practitioners about changes at the revenue service. According to the newspaper, more salary earners are subjected to audits – while SARS takes […]
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How you will pay for Zuma’s free education plan

The government is considering drastic budget cuts to fund free higher education, including cutting social grants, freezing the roll-out of RDP houses and increasing taxes. With the country facing an unpre-cedented R50.8‑billion revenue hole, a treasury document has been put before President Jacob Zuma by the presidential fiscal committee, outlining possible areas where budgets could […]
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Parastatal waste equals tax shortfall: Treasury will need to find new resources to close the budget gap

The R50‑billion shortfall in tax revenue that the treasury will need to find elsewhere to plug the budget gap is close to how much state-owned entities (SOEs) have thrown down the drain in the past financial year. The auditor general, Kimi Makwetu, released national and provincial audit results on Wednesday. Although the number of clean […]
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The only thing falling faster than the Rand is the Presidents eyelids: Zuma caught napping during Gigaba’s mini budget speech

A screenshot of Jacob Zuma taking a nap during Malusi Gigaba’s mini-budget speech has gone viral. Gigaba delivered his “maiden” budget speech on Wednesday – and the forecast was pretty grim. But if you’re hoping that President Jacob Zuma was going to zoom in to try and boost the confidence of consumers and investors, you’re […]
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Junk status looms after mid-term budget fails to inspire confidence – It is not looking good for SA

Economists have warned that South Africa could be in line for a credit downgrade to junk status – possibly before the end of the year. Their fears come in light of Malusi Gigaba’s mid-term budget speech, delivered to parliament on Wednesday. “It is not in the public interest, nor is it in the interests of […]
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Gigaba’s first test: Can he ace the mid-term budget?

Finance Minister Malusi Gigaba is in an unenviable position. In his maiden budget – today’s medium-term budget policy statement – he must confront, among other things, low economic growth, a tax revenue hole big enough to fly a plane through and the budgetary consequences of struggling state-owned enterprises. These issues are some of the chief […]
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How To Plan For The Unplanned

Life happens. The geyser bursts. You get an unexpectedly large electricity bill. You break a tooth opening a beer bottle. (Don’t ever do that, by the way, it’s not as cool as you think.) Life happens, and when it does, chances are you are not ready for the financial fallout. Unexpected expenses can happen at […]
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