Successive governments, despite going through the pomp and pageantry of preparing and presenting the budget, have rarely met targets they set for themselves.
In addition, a great part of the budget proposals are also not implemented either due to a lack of commitment, resistance from unions and pressure groups.
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The proposals that actually get implemented meanwhile are most often watered down from the original after industry pressure group lobbying.
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Then what is the purpose of the budget? Financial analyst say, looking past the expenditure and revenue targets, the budget also introduces changes to the tax system (usually in the hopes of increase revenues for the state), a key factor, with serious repercussions for a cross section of businesses.
Recent budgets have increased taxes on the ‘luxury category’ in the hopes of affording a handout to the majority middle class and less affluent.
The illustration on the right plots the key indicators of the budget since 1997, highlighting the disparities between budget estimates and the actual outcome.
Click here for a larger image. (Requires Acrobat Reader - 89 KB - 0.45@28.8 kbps).
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