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