Archive for February, 2016

How does the 2016 Budget affect you?

South Africa's Finance Minister Pravin Gordhan speaks in Parliament in Cape Town, in this file picture taken February 26, 2014. Gordhan must juggle the conflicting demands of voters and credit rating agencies next week in his first budget since he returned to the post, charged with restoring confidence in the nation's economic management. REUTERS/Mike Hutchings/Files

How does the 2016 Budget affect you?

Budget 2016 Speech and docs

Budget framework

  • The budget deficit will fall from 3.2% in 2016/17 to 2.4% in 2018/19 (3.9% in 2015/16).
    •  Debt stock as a percentage of GDP is expected to stabilise at 46.2% in 2017/18 (43.7% in 2017/18).
    •  Government will lower the expenditure ceiling by R10bn in 2017/18 and R15bn in 2018/19 by reducing public sector compensation budgets.
  • An additional R18.1bn of tax revenue will be raised in 2016/17, with R15bn more in each of the subsequent two years.
  • Government has responded to new spending needs without compromising expenditure limits. An amount of R31.8bn has been reprioritised over the medium-term expenditure framework period to support higher education, the New Development Bank and other priorities.