Budget 2022 also shows where your tax money goes and the good news is that there will indeed be more money for law enforcement, supporting vulnerable households and teachers.
Minister of Finance Enoch Godongwana said as we face steep and daunting challenges, we will overcome and to do so, we need to strike a balance between saving lives and livelihoods, while supporting inclusive growth.
“This budget presents this balance,” he said.
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Tax collections have been much stronger than expected, with tax revenue for 2021/22 estimated to be R1.55 trillion, R62 billion higher than estimates from four months ago.
However, he pointed out that although the fiscal outlook has improved, there are significant risks to the fiscal framework that include slowing global and domestic economic growth, calls for a permanent increase in social protection that exceed available resources, pressures from the public service wage bill and continued requests for financial support from financially distressed state‐owned entities (SOEs).
One of the most important aspects of the budget is that it shows where tax payers’ money goes. This includes:
R17.5 billion for infrastructure catalytic projects
R15 billion for small business loan guarantees
R20 billion for the total support package through the bounce-back scheme
R76 billion for job creation programmes
an additional R18.4 billion for the Presidential Employment Initiative
R3.33 trillion over the next three years for social wage to support vulnerable and low-income households
R32.6 billion for financial support to current bursary holders and first-year students
R24.6 billion for provincial education departments to address the shortfalls in the compensation of teachers
an additional R15.6 billion for provincial health departments to support their continued response to COVID-19 and bridge shortfalls in essential goods and services
R3.3 billion to absorb medical interns and community service doctors
R8.7 billion for the Police budget and R1 billion to implement personnel reforms, as well as another R800 million in the following year subject to satisfactory progress
An extra R1.1 billion for the budget of the department of justice and constitutional development, while the Office of the Chief Justice receives an additional R39.9 million
An additional R9.9 billion to the South African National Roads Agency (SANRAL) for maintaining the non-toll road network
R2.1 billion for raising the Clan William Dam
R1.4 billion for the Lepelle Water Board for the Olifantspoort and Ebenezer plants
R813 million for the Umgeni Water Board for the Lower uMkhomazi Water Supply Scheme
R5 billion for the Land Bank
R20.5 billion to meet the cost implications of the 2021 public service wage agreement
R28.9 billion for the local government equitable share to uplift and provide services
R5.2 billion in tax relief to help support the economic recovery, provide some respite from fuel tax increases and boost incentives for youth employment.
Godongwana concluded his maiden budget speech by saying: “You won’t realise the distance you have walked, until you look around and realize how far you have been. We have been on this journey for a long time. And we still have a long distance to walk before reaching our goal.”
