TRAILBLAZER: A conversation with Budget Speech Essay finalist, Gosiame Tsotetsi

 

By Sumona Bose and Parusha Chetty

This article can also be found in the print Edition 1 of VARSITY Newspaper.

 

What is the Budget Speech Essay Competition and why did you enter?

The Annual National Economics Essay competition is a categorical competition held for Economics students in South Africa. It is held at both undergraduate and postgraduate level, and tackles issues on natinoal economy and its diffusion effect on society, through the lens of university students. The selected competitors from each university are sent for a short training camp where we meet with media people and people from the commerce industry. The top winners received large cash prizes and recognition from the Minister of Finance from the Reserve Bank. It’s helmed to be a prestigious competition around the working world, especially for Commerce students, and I wanted to take part to experience the prestige of the whole occasion.

 

What are you studying?

I’m in 4th year, Bachelor of Business Science, majoring in Finance.

Gosiame at the competition. Image courtesy of Gosiame Tsotetsi.

What is the purpose of the budget speech and is it important for students to be aware of what is said in it, why?

The yearly Budget Speech is given by the finance minister who checks in on the country’s expenditure and income. It should be monitored by Commerce students. There’s always a summary that’s circulated regarding the most salient points raised, such as healthy care and educations; which affects us all.

 

What are your key outtakes parts from the budget speech?

South Africa is in poor financial prospects and the government’s decision to raise taxes is a way to squeeze out from consumers, in order to adjust the poor financial status of the country. I’m deeply concerned by the rise in tax, but more specifically by the fact that free education is not economically feasible due to our country’s financial state.

 

What is the likely effect of the increase in VAT?

Since VAT is a regressive tax route, the effects of the increase in my opinion, are that the consumer will continue to be squeezed. VAT hasn’t been raised in 25 years, so I guess it was an easy target. However, the reason why taxes are increasing is due to our government’s irresponsible expenditure. And now, we all have to foot the bill. I don’t predict social revolution or anything like that, I think people are just going to carry on carrying on.

 

Does the change in the Minister of Finance affect the budget?

No, as the budget was already set. It was drafted by a team of employees who are still at treasury. It was also done in consultation with the president, who is also still very much there. To be honest, in this rarely stagnant political atmosphere, I don’t see anything too revolutionary happening – other than ministers under-spending because they don’t know what they’re doing.

 

Any other comments on the budget speech or the competition?

I think it’s something that all students who have a stake in this country should keep track of. It’s an important speech for anyone interested in the political sphere. I really encourage all students in the economic sphere at UCT to consider entering. It’s an insane experience, you get to meet the Minister, network and get to meet some very interesting and weird people from around the country.

 

 

 

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