The indirect effect of Budget 2015 on SMEs Petra Rees South Africa’s tax plans for the next three years have just been announced by Nhlanhla Nene, the country’s finance minister. The Budget 2015 will directly impact small and medium-sized enterprises (SMEs), but there are also indirect effects – such as the weakening Rand and power shortages – that are just as significant. The growth rate in South Africa is expected to be around 2,5% this year, although the National Treasury has just revised this figure to 2%. The deficit must be kept under 3% of the GDP, which explains the government spending, tax and borrowing plans announced in the Budget 2015.  “Government spending is very high on the agenda and must be tightly controlled in order to reach those targets. If the government doesn’t succeed, South Africa will be downgraded to a junk status by the rating agencies. A further downgrade would put the Rand under severe pressure which would have a ripple effect on the whole e...