Krutham MD Peter Attard Montalto joins Xoli Mngambi on Newzroom Afrika to discuss the VAT hike increase.

“From a technocratic perspective, this is a well put together budget. It addresses the lower VAT increase in a very positive way, protecting frontline services, grants and critical infrastructure. It also highlights that there is an agreement within the GNU on the broad path of fiscal consolidation, on debt-to-GDP coming lower. However, it doesn’t answer the fundamental political questions on whether there is agreement within the GNU, particularly from the DA, to support the VAT increase. There are risks ahead. Even within the ANC, there are divisions – the head of the standing committee on finance has said he doesn’t back a VAT increase. All these things are going to play out relatively quickly in the next two weeks,” says Attard Montalto.

Watch the full clip below.