Budget in a nutshell

Budget in a nutshell - 2012 Budget

The budget and your wallet...

The budget and your wallet:
  • Personal income tax relief of R9.5bn. 54% of the relief will go to taxpayers who earn less than R260 000 a year.
  • General fuel levy increases by 20c a litre, the Road Accident Fund levy increases by 8c a litre.
  • Sin taxes: A packet of 20 cigarettes will cost 58c more, a 750 ml bottle of liquor (spirits) R6 more, a 340 ml can of beer 9c more and a 340 ml can of cider will cost 8.84c. A litre of wine will cost 18c more.
  • A new tax credit will replace the tax reduction for medical aid contributions.
  • Tax incentive to encourage savings that may replace the current interest exemption thresholds.
  • A 15% dividend withholding tax to kick in on 1 April. Pension funds, companies are exempted from this tax.
  • Significant tax concessions and reduced red tape for small businesses.
  • Electricity levy increased by 2.5c/kWh.

Economic outlook:
  • Budget deficit of 4.6% in 2012/13, 4% in 2013/14 and 3% in 2014/15.
  • Government spending to reach R1.1 trillion in 2012/13.
  • National government’s net loan debt to reach R1.5 trillion in 2014/15.
  • The national treasury expects economic growth of 2.7% in 2012, 3.6% in 2013 and 4.2% in 2014.
  • The national treasury expects headline inflation to be 6.1% in 2012, 6.2% in 2013 and 6.1% in 2014.

Government spending plans
  • R9.5 billion for the Economic Competitiveness and Support Package, including R2.3 billion for dedicated special economic zones;
  • R6.2 billion for job creation;
  • R3 billion for equalisation of subsidies to no fee schools and expansion of access to Grade R;
  • R1 billion for National Health Insurance Pilot project;
  • R1.4 billion for Early Childhood Development;
  • R4 billion for Passenger Rail Agency of South Africa for coaches, as the start of a programme to replace the current fleet;
  • R1 billion for Signalling and depot infrastructure related to this new rail transport programme;
  • R4.7 billion for electricity demand side management grant: Eskom for the installation of solar water geysers;
  • R1.8 billion for municipal water infrastructure;
  • R3.9 billion for upgrading informal settlements.



Denny Crane

Denny Crane
It's not me ... yet. Denny Crane from the TV series Boston Legal. Click on picture if you're not sure who he is!