Thursday, 12 February 2009

South African Budget Speech 2009 /2010 - Summary - Overview

Trevor Manuel announced the budget speech yesterday. With his "budget policy in the time of crisis", Trevor Manuel yesterday presented a brand new lease on life view of the economic crisis that's hit SA, moving away from his usual conservative views and opening up with some mind blowing numbers and figures to help stimulate our economy for 2009 / 2010.

So without further ado, i give you the summary / overview of the 2009/2010 budget speech. We will later today post the entire breakdown of the budget.

Tax breaks:

  • tax payers will pay R13.6 billion less in income tax

  • individuals under 65 who earn less than R54 200 per year will pay no tax

  • those over 65 who earn less than R84 200 will pay no tax

Cough up for your cigarettes:

  • a packet of cigarettes now cost 88 cents more

  • the price of 750ml bottle of spirits goes up by R3, 21

  • a 340ml can of beer now sets drinkers back a further 7 cents

Grants grow by R50:

  • from April, the old-age, disability and care dependency grants will rise by R50 a month

  • the retirement age for men currently at 63, is in the process of being reduced to 60 by 2010 to be on a par with that for women

Petrol pain

  • fuel levies will go up on April 1 by 23 cents litre for petrol and 24 cents a litre for diesel

  • the road accident fund levy will go up by 17.5 cents a litre

  • the total increase will be just over 40 cents a litre


Justice and safety

  • the fight against crime will receive a R5.4 billion boost this year, bringing total spending on courts, prisons and the police in 2009/2010 to R101 billion

  • R3 billion will be spent on upgrading the it networks in the criminal justice system

Schools, roads and clinics

  • R24.8 billion to provinces to increase services, mainly for health and education

  • a further R4billion for the school nutrition programme

  • R4.1 billion for provincial infrastructure especially, schools, roads and clinics

Service delivery and job creation

  • free basic services; R600 million for municipalities to extend free basic services

  • to create jobs and accommodate higher costs for skills and materials, spending on infrastructure will rise from an estimated R690 billion to R787 billion most of it for municipalities, provinces and parastatals

Better health care

  • R932 million for the treatment and prevention of AIDS

  • an extra R1.8 billion for three new vaccines to help reduce infant death

  • R728 million for the hospital revitalisation programme - upgrades and construction of 31 hospitals nationwide

Supporting children

  • from April, the foster care grant will increase to R680

  • last month the R240 child support grant was extended to 15 year olds

2010 fifa world cup

  • an extra R463 million to cover cost increases and pay for better project management of the stadiums being built

  • R508 million in 2009/2010 and R210 million in 2010/2011 to help host cities prepare

  • R11.9 billion in the next 3 years for public transport

Powering eskom

  • R1 billion to manage power consumption

  • eskoms R60 billion government loan to be repaid over 30 years. the power utility which got R10 billion in last years budget gets a further R30 billion in 2009/2010 and R20 billion in 2010/2011

Poverty relief

  • the expanded public network programme which has run for four years will be extended by another 5 with the provision for jobs that will keep people employed for longer

  • R1.8 billion for rural development over the next 3 years

Thanks Trevor

References: The Star & The Pretoria News


nbalike said...
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nbalike said...
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Colin Brazendale said...

Very conservative budget, like always. I would have liked to see more tax relieve on company tax and up the threshold of transfer duty to R1m.

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jkproperties said...

I would also have loved to see the transfer duty threshhold lifted to a million.

This would have helped a lot of first time buyers get onto the property ladder.

It is really tough on them as it is with only 90% bonds available.

WizardMan said...

I think that would've given a lot of relief to buyers.

the 10% deposit is really starting to hurt people and with only FNB and Nedbank offering this to clients, we're looking at an average of a 15% deposit.

Having said this though, we've been lucky enough in SA to have the 100% offering. Globally, this was not always an option.

Mini said...

thanx, this is well put together, I can actually understand what's going on!:-)
Trevor Manual did a great job, as always, but I'm realy proud of South-Africa, I mean, we are doing realy good in terms of not having alot of dept in this economic crisis

WizardMan said...

Couldn't agree with you more. It's great to be South African right now and I truely believe that South Africa has some major advantages over other countries in these economic times. We've been through the growth phase and we've been through teething phases of businesses growth and economic growth for the last 10 years.

Watch out for SA, we're going to be the leaders of the pack!

prashant said...
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Anonymous said...

our country is doing its nation good, but what is it that the mpumalanga department of education is doing with our future teachers those they gave an unpromising bursary, please understand that they are from poor families they need their meal allowances in the universitiies so who ever is in charge of releasing the money do it now because no body will ever be able to study on an empty stomach rather pay the fees or else we will drop out because of hunger please,please,please we don't want to fail because we cannot concentrate!!!!

WizardMan said...

Are you in Matric?

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Trevor Manuel is one of the most important man vs the crisis times, I like this overview , because give us many interesting details !

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Budget is OK but not so good .I think with some modifications and alterations, it can be made more useful and helpful for the nation.Great updation you have done.

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