Presented by: Dawie Roodt 30 January : Finding the Balance
Chairman and Chief Economist Efficient Group 81 Dely Road Hazelwood 0081 Tel: (012) Cell: Dawie Roodt
Coming Together Demand Inflation Interest Rates Debt Demand Supply Saving Investment GDP Current Account Fiscal Policy GNP
Demand
Inflation
Interest Rate
Credit Extension
Credit Demand
Household Debt and Debt Servicing Cost to Disposable Income Source: SARB / Own calculation
Consumption Expenditure by Households Source: SARB
Supply
Savings to disposable income of households Source: SARB
Fiscal Policy
Gross Fixed Capital Investment
Gross Fixed Capital Formation to GDP
GDP at Market Prices
Fiscal Policy
Gold Trevor’s reign!
Fiscal Policy
Summary Increased Revenue Increased Expenditure Lower Deficit Lower Debt Support Consumption Expenditure
Revenue
Contribution to Fiscus
Expenditure
Spending Priorities
Redistribution (2006 Rands) Rand In : Rand Out Ratio2006/
Results
Balance of Payments
How to Fix the Problem? Lower corporate tax Increase consumption tax Increase capital expenditure Decrease current expenditure
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