MINI BUDGET 2009

Moneyweb reporter|

27 October 2009 13:38

Mini-Budget in a nutshell

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All the major changes in Minister Pravin Gordhan's Medium-Term Budget Policy Statement 2009.

  • Exchange controls and associated red tape to be relaxed. Limit for individuals raised to R4m.
  • Growth of 1.5% expected for South Africa in 2010, rising to 3.2% in 2012.
  • Creating jobs, particularly among millions of relatively unskilled South Africans, is the country's greatest economic challenge.
  • Nearly half a million South Africans have been retrenched over the past year and Unemployment Insurance Fund claims doubled in the year to April 09.
  • Government considers establishing an industrial development and job creation fund.
  • More than 13m people now receive social grants.
  • By March 2010, 900 000 people will be receiving antiretroviral treatment.
  • National Treasury and the Reserve Bank to focus on low inflation and a more stable and competitive real exchange rate.
  • Tax revenue is down sharply as a result of the recession.
  • Sars to increase penalties on non-payers to ensure "fairness".
  • Policy aims to encourage a recovery without burdening future generations with unsustainable debt
  • Mining displayed the first signs of recovery, with production rising strongly in the six months to August.
  • Lower interest rates and falling inflation are expected over the period ahead.
  • Eskom tariff increases will be required to align the price of electricity with the cost of generation.
  • The current-account deficit is projected to increase to 5.7% in 2010.
  • Government needs other forms of revenue. Proposals include broadening the tax base, improving tax compliance and the introduction of new taxes.
  • South Africa is falling short of its commitments by failing to meet the "legitimate" service expectations of its people.
  • Departments need to reduce expenditure on low-priority and non-essential items. Total net savings of R14.5bn at national level and R12.6bn at provincial level have been identified over three years for prioritisation.
  • Cost cutting examples include catering, communication, consultants, inventory, stationery and printing, travel and subsistence, accommodation and entertainment.
  • An additional 22 500 police personnel to be recruited by 2012/13. Special investigators for priority crime to increase from 350 to 2 400 in same period.


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