Also, it's ignoring the multiplier effect. Each rand given to some worker will move around the economy as it's re-spent. It doesn't disappear unless it goes overseas, and not all of it was. Consider the whole exercise a good way to inject money into the economy instead of giving it to Goldman, like the U.S. did. We get a shiny train and wider roads. Goldman gets a weekend in the Hamptons and a new Ferrari.
Lol...only if the event generates R40bn in actual tax revenues can it be deemed to "have broken even" financially. The headline is mere obfuscation to keep 5.5m taxpayers compliant and misinformed and is disingenuous at best. If correct, South Africans wouldn't have been required to soon start paying for toll roads or for ACSA to be granted a 100% tariff increase over the next 3 years. The ongoing maintenance of the various stadia will also be for the account of the relevant ratepayers. "Most of the income from the tournament, however, goes to football's ruling body FIFA, which is on course to gross 3.2 billion dollars from the World Cup" - the real winner therefore unless your are a pharmacist..and confuse the gross value of transactions i.e. turnover with income. Rather just be honest and focus on the so-called "soft" benefits, while they last as we evidently lack the rudimentaries of either economics or accounting. For a more fundamental insight, see http://www.economist.co.za/images/the%209th%20south%20african%20employment%20report.pdf
What a ludicrous statement for Gordhan to make.As topgun rightly points out,the man is confused between revenues and net income,and surely as our minister of finance he should understand this difference.The tax revenues from this event will be minimal compared to the outlay.If any praise can be made out of this WC it should be towards the ever compliant tax paying sector of our population.
nah .. Gordhan is looking at the big picture rather then staring into the bottom of his wine glass wondering how to put a negative spin on a hugely successful WC .. of course it is not direct income to the goverment coffers, it is the overall net effect ..