The budget in 10 easy points:
Source: Rand Daily Mail
Author: Staff Business Writer
A mild tax increase, a mild rise in spending, a lecture on efficiency and an attempt to stimulate growth
Finance Minister Nhlanhla Nene’s 2015 budget speech in ten easy points:
- Ratings agencies will be well pleased with fiscal prudence, the budget deficit coming in lower than expected at 3.9% of GDP;
- Inflation or lower increases in social grant payments slows down rampant consumption expenditure;
- One percent personal tax increase for those who earn more than R181 000 a month;
- No increase in VAT or corporate taxes, but the fuel levy up by 80c a litre in total;
- Tax revenue tops R1-trillion for the first time;
- A lecture to state owned enterprises: Future expenditure to be paid for by sale of assets;
- UIF relief for employers and employed because the fund has a surplus;
- More money allocated to safety, security, defence and somewhat ominously ‘public order’ policing;
- Centralised text book distribution and tender procedures to eliminate waste and fraud; and
- A pretty good maiden budget under difficult conditions
