It was not clear what we expected from the 2016 budget speech which made it such a keenly anticipated event. The recent changes in personnel at the office of the Minister of Finance made it impossible to predict what Minister Gordhan’s priorities would be since his tenure in office has been so short.

There was a sense that much of the focus would be on trying to avoid a sovereign debt downgrade and to talk up programmes to stimulate growth in a flagging economy. From a tax perspective, the outcome was not as bad as some had suggested, but for those at the top end of the scale, the changes will be felt.

This was a budget with a focused mission and whether or not it achieves its goals will be seen in days to come. Evidence will lie in movements of the Rand and noises from the rating agencies. However, it was a return to form for the Minister who always guided the economy with a conservative yet subtle hand on the tiller and the Minister’s performance this year only reinforced how fortunate we were to have him back.

Submitted by Norton Rose Fulbright