22 February 2012
A budget deficit of 4, 6% of GDP is projected for this year and next year.
Finance minister Pravin Gordhan plans to reduce the deficit to 3% of GDP in 2014 and 2015.
He also adds that public debt will stabilise at about 38% of GDP.
For this year one of the main priorities is expansive in infrastructure investment.
There will be special emphasis given to improving competitiveness in industry, investment in technology, encouragement of enterprise development and support for agriculture.
The total spending for next year will reach R1, 1 trillion representing some 32% of GDP.
Education, health and social assistance will remain the largest categories of expenditure, sustaining and expanding the social wage over MTEF period ahead.
Gordhan expressed that investment in people is at the centre of their growth and development strategy.
The budget continues to focus on job creation, particularly focusing on unemployed youth.
Gordhan said that the budget provides for personal income tax relief of R9, 5 billion with further measures to increase tax compliance.
These measures are proposed to help with household savings.
He said that they will help with financial management in the public sector, pursue value for money and ensure that taxpayers’ money is well used.
He highlighted that corruption will be combated through changes of procurement policies and practices and tough enforcement of the law.
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