Teamwork vital to boost economy – Gordhan
Gordhan pleads employers, unions and labourers to work together to uplift the country's sluggish economy
IT is time for a bold vision of our future as set out by the National Development Plan. rapid growth, jobs and development is needed.
These were the sentiments of Finance Minister Pravin Gordhan in his budget speech on Wednesday afternoon, pleading to businesses, unions, workers and stakeholders to join hands in achieving a thriving economy and greater equality.
‘The new economic order the South African government seeks cannot just be a pact amongst elite or a coalition amongst stakeholders with vested interests, nor can it be built on populist slogans or unrealistic promises,’ said Gordhan.
Gordhan said today’s global economic outlook remains unsteady, foreseeing an economic growth of 2.7% for 2014, which is significantly lower than last year’s expectation of 3.5%.
‘Some advanced economies have returned to growth, others continue to lag,’ said Gordhan.
‘The slowdown in quantitative easing by the Federal Reserve has caused further uncertainty to financial markets, currency volatility and capital outflows from emerging markets.’
The gross domestic product (GDP) in 2014/15 is estimated at R3 789-billion, while total revenue will increase from R1 010-billion in 2013/14 to R1 099-billion (29% of GDP) in 2014/15.
Total expenditure will also rise from R1 159-billion to R1 252-billion (33% of GDP).
Over the next three years, government will spend:
• R410bn on social grants
• R15.2bn on the economic competitiveness and support package
• R8.5bn on the Community Work Programme
• R8.7bn on settlement of land restitution claims
• R7bn for subsistence and smallholder farmers
• R78bn on university subsidies and R19.4bn for the National Student Financial Aid Scheme
• R34.3bn on school infrastructure
• R22.9bn to upgrade commuter rail services
• R143.8bn to support municipal infrastructure
• R42bn on the HIV and Aids conditional grant
• Personal income tax relief of R9.3bn, most for lower income group
• Adjustments to tax tables relating to retirement lump sum payments
• Measures to encourage small enterprise development
• Clarity on valuation of company cars for fringe-benefit tax purposes
• Reforms to tax treatment of the risk business of long-term insurers
• Measures to address acid mine drainage.
