Budget 2025: Bonds, rand welcome careful revenue and spending proposals

Sylvester Kobo, STANLIB Deputy Head of Fixed Income, explains the VAT hikes of 0.5 percentage points proposed over each of the next two years will yield government about R43 billion in additional revenue, falling short of government needs. Other revenue measures will not cover the shortfall, but the government plans to use cash reserves rather than raise new debt. Bonds and the rand reacted positively.

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