Finance Minister Tito Mboweni delivered his budget speech in parliament on 20 February.
Here are 10 things you need to know about his speech:
- South Africa’s spending will be higher than the revenue collected in the next coming financial year. Revenue is expected to be R1.58 trillion whilespending will be R248 billion more at R1.5 trillion. Due to deficit, South Africa will be borrowing R1.2 billion a day.
- No salary increase for members of Parliament, provincial legislatures and executives at public entities.
- Eskom will receive R23 billion a year to financially support it during its reconfiguration on condition that a new chief reorganisation officer is appointed.
- The health sector will be allocated R717 billion including the National Health Insurance (NHI).
- R1.8 billion has been allocated for the implementation of 262 priority land-reform projects over the next three years.
- More than R30 billion has been allocated for construction of new schools and maintenance of existing ones and R2.8 billion to replace pit toilets.
- R14.7 billion over the two external years has been reprioritized for the upgrade of informal settlements.
- Sin tax has increased. Beer goes up by 12 cents, a 750ml bottle of wine by 22 cents, a 750ml bottle of sparkling wine by 84 cents to R10.16, a bottle of whiskey by R4.54, a pack of 20 cigarettes by R1.14, a cigar by about 64 cents. No change to the excise duty on sorghum beer.
- Fuel levies will increase by 29 cents per litre for petrol and 30 cents per litre for diesel.
- Social grants will go up – R80 increase for old age, disability, war veterans and care dependency grants. R40 increase for the foster care grant to R1 000. The child support grant will increase to R420 in April and to R430 in October.
What are your views about the budget speech?
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