Budget 2011

SA BUDGET 2011


Government has set out five priorities:

They are:

• Education

• Health Car

• Fighting Crime

• Rural Development

• Creating Jobs

The Twelve outcomes adopted by Cabinet are:

• High quality Basic Education

• Improved Health and Life expectancy

• Greater Public protection and safety

• More rapid employment creation and inclusive growth

• Skilled and capable workforce

• Sustainable human settlements and improved quality of household life.

• Responsive and accountable local government

• International cooperation for a better and safer world

• A development-oriented public service and inclusive citizenship

• Efficient economic infrastructure networks

• Vibrant rural communities and food security

HIGHLIGHTS OF THE 2011 BUDGET:

Towards inclusive growth and Equitable Development

• South Africa’s new growth path aims to create 5 million jobs over the decade ahead

• Education and skills development remain top priorities in Government Expenditure

• Investment in infrastructure of over R800 billion over the next three years

• Phased implementation of Social Security and national health insurance reform

• Key fiscal policy guidelines: stability over the business cycle, sustainability and inter-generational equity

Economic recovery and Employment

• Economic growth of 3.4% is projected for 2011, increasing by 4.4 % by 2011

• Consumer price inflation dropped from 7.1% in 2009 to 4.3% in 2010, and is expected to rise to 5.5 % by 2013

• 63 000 formal non-agricultural jobs were created between April and October 2010 and unemployment fell from 25.3 % in the 3rd Quarter to 24% in the 4th quarter.

• Job creation potential of 485 000 over the next three years in trade and construction sectors

• Investment incentives in manufacturing, with a special focus on job creation

• R9 billion jobs fund to co-finance employment initiatives with self-sustaining potential

• Youth employment subsidy to create net 178 000 jobs over three years

• Expansion on FET college, skills development and extension of learnership



Fiscal Framework



• Additional R94.1 billion in government expenditure plans over the next three years

• Budget deficit of 5.3% projected in 2010/11, 4.8% in 2012/13 and 3.8% in 2013/14

• National government net loan debt projected to rise from R526 billion at the end of 2008/09 to over R1.4 trillion in 2-013/14



Tax Proposals

• Personal tax relief of R8.1 billion

• A third rebate relief for individuals 75 years and older

• Conversion of medical tax deductions to tax credits

• Transfer duty relief

• General fuel levy increase of 10c a liter, and 8c a liter more for Road Accident Fund

• Increases of 4.5% - 10.3% in taxes on alcohol and tobacco products

• Taxation of gambling winnings



Additions to spending plans over the next three years



• R10 billion for job creation, small enterprise development, youth employment

• R10.4 billion for public transport, roads and rail infrastructure

• R9.5 billion to increase enrolment at further education colleges and promote skills development

• R8.2 billion for upgrading school facilities and improved learner support materials

• R7.9 billion to improve primary health care , revitalize hospitals and HIV care

• R7.2 billion for human settlement upgrading, municipal services and waer infrastructure

• R2.8 billion for rural development and emerging farmer support

• R8.9 billion for social security benefits and social grants old age and disability grants increase by R60.00 R1 140.00 per month and a further R20.00 to R1 160 per month for those over75; the child support grant will increase from R260.00 to R 270.00 in October

• 1.8 billion for municipalities and provinces to deal with immediate disaster needs and R600 million for post-recovery and reconstruction following the floods in early 2011

Cost of Travelling fees fees fees

What super news and finally a bank getting it together.

Chase has some great news for international travelers who are sick and tired of fees that ALL credit card companies tack on when merchants process a transaction outside of the United States of America.


This week, Chase announced it would no longer smack everyone with these heavy currency conversion fees on its United Mileage Plus Club Visa and the Continental Presidential Plus card.

Finally some credit for your efforts. If you have a Chase United or Continental card with a different name, you will probably continue to pay the fee for non-United States transactions, though you should call the company to clarify this. These guys are great in selling you additional services and products, thats the game.

While there are plenty of card companies that continue to levy these fees, the momentum is clearly swinging toward getting rid of them, thanks in part to people like you who have complained loudly and then found ways around them and people like me who never tire of pointing out how questionable the fees are.

Chase has already dropped the fees on British Airways, Priority Club and Hyatt co-branded credit cards. Citigroup has done so on select cards, and American Express plans a similar move.

So will we see this happening with localised credit card service providers in South Africa, UAE etc we will see.!!












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