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NEWS
Henley offers scholarships to investigative journalists
Henley offers scholarships to investigative journalists

5 trends that can keep the South African MBA relevant
5 trends that can keep the South African MBA relevant

We need to realign government, business and civil society
We need to realign government, business and civil society

Life as a full-time MBA student
Life as a full-time MBA student

Brexit delay provides breathing space for SA
Brexit delay provides breathing space for SA

MSA joins the ADvTECH family
MSA joins the ADvTECH family

SA plunges to 117 out of 149 in gender wage equality
SA plunges to 117 out of 149 in gender wage equality

UCT’s Executive MBA recognised for its distinctive approach
UCT’s Executive MBA recognised for its distinctive approach

GIBS Executive MBA programme debuts in top 50
GIBS Executive MBA programme debuts in top 50

Can Africa fill the glass?
Can Africa fill the glass?

YALI AFRICA launch at Unisa
YALI AFRICA launch at Unisa

The fake resurrection of South Africa
The fake resurrection of South Africa

Don't panic: The digital revolution isn’t that unusual
Don't panic: The digital revolution isn’t that unusual

Why Agile works
Why Agile works

How firms can avoid the mediocrity trap
How firms can avoid the mediocrity trap

How a 100000-strong company is relearning how to innovate
How a 100000-strong company is relearning how to innovate

The changing shape of the MBA
The changing shape of the MBA

Adding climate change to curriculum is a top priority
Adding climate change to curriculum is a top priority

The MBA should turn you into a business disruptor
The MBA should turn you into a business disruptor

Innovation in SA organisations driven by C-level support
Innovation in SA organisations driven by C-level support

UNISA SBL a torch-bearer of training for military veterans
UNISA SBL a torch-bearer of training for military veterans

Scaling up the MBA for relevance in the 4IR
Scaling up the MBA for relevance in the 4IR

Moody's: SA not out of the woods yet
Moody's: SA not out of the woods yet

GIBS manufacturing-focused MBA kicks off in Durban
GIBS manufacturing-focused MBA kicks off in Durban

Henley’s Makhoalibe selected for sought-after programme
Henley’s Makhoalibe selected for sought-after programme

Personal potential, a source of power
Personal potential, a source of power

Reach your business leadership potential with a MBA from WBS
Reach your business leadership potential with a MBA from WBS

MPC: SA needs a period of stable interest rates
MPC: SA needs a period of stable interest rates

SA’s energy problems just the tip of the iceberg
SA’s energy problems just the tip of the iceberg

What's really driving disruption?
What's really driving disruption?

Why has there been such a failure of leadership?
Why has there been such a failure of leadership?

Steinhoff: Exactly where does responsibility stop and start?
Steinhoff: Exactly where does responsibility stop and start?

The cure for the loneliness of command
The cure for the loneliness of command

How to survive in the age of digital transformation
How to survive in the age of digital transformation

New MBA timetable starts in 2016
New MBA timetable starts in 2016

EVENTS
Henley MBA & PGDIP Preview Day
Henley MBA & PGDIP Preview Day
29 May 2019,
Pretoria

UCT GSB MBA Information Sessions
UCT GSB MBA Information Sessions
15 October 2019,
Johannesburg



03 MARCH 2019
Budget provides frank assessment of challenges facing SA

by Raymond Parsons: Professor at the NWU School of Business & Governance and a former special policy adviser to Busa.
The 2019/20 Budget Speech given to Parliament last month was a frank and realistic assessment of the extent to which the economic and fiscal challenges facing SA had escalated since the Medium-Term Budget Policy Statement (MTBPS) or mini-Budget was presented in October last year. Finance Minister Mboweni nevertheless sought in a consistent way to add financial and fiscal dimensions to the broader vision outlined in the SONA last month.

But there was very limited room to manoeuvre, due mainly to muted economic growth on the one hand, and to the new annual allocations of about R23 billion to Eskom over the next three years, on the other. The key fiscal deficit ratios over the next few years are therefore set to deteriorate from what was outlined in the MTBPS, making this a Budget of unenviable compromises.

The continued commitment nonetheless by Finance Minister Mboweni to fiscal sustainability is welcome, especially in implementing serious new measures to control state spending, partly to compensate for the large allocation to Eskom. And tax revenues are down. Given the tight Budget, an increase in the tax burden was inevitable. The tax increases chosen will probably do the least harm economically.

Yet if combined with the failure to allow fully for 'fiscal drag' on personal tax, the other tax and fuel levy hikes will reduce disposable income and could inhibit consumer spending. This may constrain consumption as a growth driver. The small tax base and 'tax buoyancy' thus remain problems which need structural solutions if the persistent rise in the tax burden is to be reversed.

Hence there are still long term risks inherent in the fiscal outlook. These widespread concerns will continue to shape future fiscal imperatives, unless SA can raise its growth rate considerably. The 1.5% to 2% growth expectations over the next couple of years are simply not good enough to tackle SA's socio-economic challenges in the period ahead.

To avoid precipitating a 'debt trap' or investment downgrades in the period ahead it is therefore necessary to implement the structural reforms that can put the economy on a much higher growth trajectory. What clearly shines through the fiscal gloom of recent years is the overwhelming needs for a dramatic and sustainable boost in SA's flagging growth rate on the basis of structural economic and governance reforms.

Once the elections are out of the way in May, SA must concentrate on the fundamental measures and projects that will make it the preferred investment destination required to underpin higher inclusive growth and job creation.
Source:

NWU Business School
At the NWU Business School, we strive to change the way our students think about business. We want our students to become managers/leaders in their own right. Visit our InfoCentre or website.

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