Tuesday, 26 February 2008

Budget Speech: Trevor Manuel: 2008 - 2009

Click here to VIEW LATEST BUDGET SPEECH 2009 /2010 - Just added

South African Budget
Howdy Folks: This is just a quick post to show everyone the updated and latest budget speech. Most people finding our website are hitting last years 2007/2008 budget speech and hence thinking that there's no change occurring in South Africa ;-)

So before any protests start here's a copy of the latest 2008/2009 budget speech by Trevor Manuel. It is really big, and if you'd like to download a copy you can download it from the Old Mutual Site (that's where I stole it, thanks Old Mututal)... http://www.oldmutual.co.za/markets/south-african-budget-2008.aspx

For those of you who'd prefer a brief highlight of the Budget Speech by Trevor, here it is!! Let us know your thoughts please!!

2008 Budget highlights - Trevor Manuel - South Africa

The economy and fiscal stance:

• GDP growth of 5 per cent in 2007, with growth averaging about 4.3 per cent a year over the forecast period.
• CPIX inflation rising to 7.1 per cent in 2008 before declining to 4.9 per cent in 2009.
• Gross fixed capital formation projected to rise from 21 per cent of GDP in 2007 to 24 per cent in 2010.
• Estimated consolidated national budget surpluses of 1 per cent in 2007/08 and 0.8 per cent in 2008/09, with projected surpluses over the three-year period.
• Real growth in consolidated government non-interest expenditure of 6.1 per cent a year over the MTEF.
• Government contribution to national savings projected to rise from 0.8 per cent of GDP in 2006/07 to 1.5 per cent in 2010/11.
• R60 billion to support Eskom’s capital financing requirements over the next five years.

Tax proposals:

• Total tax relief for individuals of R7.7 billion.
• Reduction in the corporate income tax rate from 29 per cent to 28 per cent.
• A simplified tax regime for small businesses.
• R5 billion in tax subsidies over the next three years for labour-intensive industries and industrial policy.
• An electricity levy of 2 cents per kilowatt hour.
• Fuel (petrol and diesel) taxes to increase, from 2 April 2008, by 11 cents per litre.
• A packet of 20 cigarettes will cost 66 cents more.
• A 750 ml bottle of wine will cost 12 cents more.
• A 340 ml can of beer will cost 5 cents more.
• A 750 ml bottle of liquor (spirits) will cost R2.17 more.

Spending on public services Additions to spending over the next three years:

• R33.2 billion for provinces mainly for school education, health care, welfare services and roads.
• R6.5 billion to municipalities for the extension of free basic services.
• R12.5 billion for social grants, including extension of the child support grant to children up to their 15th birthday in 2009 and lowering of the age of eligibility for men to receive the old age pension to 60.
• R9 billion in conditional grants for school building, HIV and Aids, hospital revitalisation and school nutrition.
• R8.2 billion for public transport, roads and railway infrastructure.
• R6 billion for housing, water and general built environment infrastructure.
• R2 billion for 2010 FIFA World Cup Stadiums and related infrastructure.
• R2.5 billion for industrial development and small, medium and micro enterprises.
• R2.6 billion for agriculture and land reform.
• R2.7 billion for information technology network infrastructure, police forensic laboratories and additional police personnel, and R2 billion for correctional facilities.
• R1.4 billion for higher education, research and knowledge development.
• R1 billion for programmes under the expanded public works umbrella.

WizardMan Out!


david santos said...

Thanks for your posting and have a good day.

mak said...
This comment has been removed by a blog administrator.
Anonymous said...

i just dont understand this country!we live in a developing country and most people struggle to buy their basic foof items, some dont have food at all!but, SA decides to still increase fuel prices,food prices,and even beer prices!, its shocking coz theyare draining the little money we earn from us, but intend to spend R2 BILLION on the FIFA world cup.my question is ,WHAT DO WE EXPECT AFTER THE WORLD CUP???? DESHNEE

Anonymous said...

i hate these school assignments!!!!!

Anonymous said...

I also don't see the point in having to give an analysis on different budgets. I'm just in grade 9, for crying out loud! I don't really care about assessing whether the budget caters for the RDP - people can't afford to buy BREAD! Give me a f u c k i n g break!

Michelle said...

Hmmm... your teachers aren't giving you a lot of background on how infrastructure development and social welfare can contribute to poverty alleviation. Don't give up on understanding the budgets: the more you learn, the more it'll make sense!

Anonymous said...

Michelle not sure which school you went to but it was obviously a good one...

I still don't know what infrastructure development and social welfare is :)

Anonymous said...

You ppl are sad

Shavon said...

You are'nt the only one. Gotta do a huge assignment on the budget speech. Grade 9 aint easy people. more money should go to schools for a better education and better teachers! Von