Mid-Term Budget key highlights
Key highlights of Medium Term Budget Policy Statement 2016 (Mini Budget Speech) delivered by Finance Minister Pravin Gordhan in Parliament on Wednesday, Cape Town.
Below are some of the key figures and proposals from Minister Pravin Gordhan’s mini-budget:
- The consolidated budget deficit for 2016/17 is projected at 3.4% of GDP. (Previous estimate 3.2%)
- Economy to grow by 0.5% in 2016, 1.3% in 2017 and 2% in 2018.
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- Inflation to rise by 6.4% in 2016, 6.1% in 2017 and 5.9% in 2018.
- Tax shortfall of R23 billion due to lower economic growth.
- Treasury to cut the expenditure ceiling by R26 billion and increase tax collection by R43 billion over next two years.
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- Total debt to GDP ratio to reach 45.8% this year and “stabilise” at 47.9% in 2019/20.
- R987 billion will be invested in infrastructure over the next years, with large investments continuing in energy, transport and telecommunications.
- An additional R17.6 billion for post-school education and training, which will grow by 11% thereafter.
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- Transfers to NSFAS to grow by 18.5%.
- No significant announcements regarding Eskom's nuclear build programme.
- No significant announcements regarding SAA recapitalisation.
Tabling the South African National Budget Speech 2017 on Wednesday, Finance minister Pravin Gordhan revealed that properties under R900 000 (previously R750 000) wll not attract transfer duty tax. ... Full story