Highlights of the budget for 2012
22 February 2012
Some of this years highlight is economic recovery and employment, the budget framework, tax proposals and additions to spending plans over the next three years.
The economic growth forecast is slow for last year from 3.1% to 2, 7% this year, this will increase in 2014 to 4, 2%.
The consumer price inflation rose with an average last year of 5% to 6, 2% this year and will decline by 5, 1% in 2014.
The current deficit to rise from 3, 3% of Gross Domestic Product (GDP) in 2011, to an average of 4, 4% over the next three years.
Employment is growing with 350 000 jobs being created last year while unemployment fell to 23, 9%.
There is an
additional R55, 9 billion in government expenditure plans over the next three
years.
Over the medium-term expenditure framework (MTEF) real growth in
non-interest expenditure of 2, 6%.
A budget deficit of 4,6% for this year and
next year, 4% for next year and 2014 and 3% for 2014 and 2015.
The national
governments net loan is expected to reach R1, 5 trillion in 2014 and 2015.
Debt
stock and interest costs as percentage of GDP to stabilise over medium term.
Personal
income tax relief is at R9, 5 billion and tax incentives to encourage savings.
There are also reforms to medical scheme contributions and retirement saving
deductions.
There is tax relief for micro and small businesses.
The dividend
withholding tax introduced at 15% while capital gains tax increased.
A packet of
cigarettes will cost 58c more while a litre of wine will cost you 18c more, a
340ml can of beer will cost 9c more and a bottle of spirits will cost R6 more.
The general fuel levy increase will be 20c a litre and 8c a litre more for the
Road Accident Fund.
Electricity to increase by 1c/kWh.
Spending
over the next three years will see R9, 5 billion for economic competitiveness
and support package, including R2, 3 billion for dedicated special economic
zones.
For job creation R6.2 billion is planned. R3 billion is planned for the
equalisation of subsidies to no-fee schools and the expansion of access to
grade R.
A total of R1 billion is planned for national health insurance
projects.
For early childhood development R1.4 billion is planned.
For
passenger rail coaches R4 billion has been planned.
R1 billion for rail
signalling and depot infrastructure has been planned.
R4, 7 billion for solar
water geysers, R1, 8 billion for municipal water infrastructure and R3, 9
billion for upgrading of informal settlements.
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