#Budget2017: What you need to know

Pravin Gordhan said govt is expected to spend R1.56 trillion in the coming year & is likely to collect R1.41 trillion in revenue.

Finance Minister Pravin Gordhan delivering his 2017 budget speech in Parliament. Picture: YouTube screengrab.

CAPE TOWN – Finance Minister Pravin Gordhan has delivered his much anticipated 2017 Budget Speech and it is not all doom and gloom.

Gordhan has forecasted slightly improved economic growth in the years to come.

The minister has revealed that government is expected to spend R1.56 trillion in the coming year and is likely to collect just R1.41 trillion in revenue.

“Today’s Budget message is that we are once again at a crossroads. Tough choices have to be made to achieve the development outcomes we seek.”

Among the highlights of his speech, was this: “The threshold for transfer duties has been raised from R750,000 to R900,000.”

So prospective homebuyers can now start house hunting.

On the expenditure side of the budget, Economic Affairs and Agriculture will get R241.6 billion, Defence R198.7 billion, Local Development and Infrastructure R195.8 billion and Social Protection will receive R180 billion.

“In these tough times, we draw strength from the resilience and the diverse capabilities of our people, our business sector, our unions and our social formations.”

EDUCATION

The Department of Basic Education and Department of Higher Education have been allocated R320.5 billion.

  • Spending on basic education next year will be over R216.7 billion.

An extra R5 billion will be spent on higher education over the next three years, bringing the total amount over this period to R37 billion.

  • NSFAS will receive R15.3 billion this year.

  • Students from families with a combined income of R600,000 p/a, will be exempt from fee increases at universities and TVET colleges this year.

  • 12.5% increase in allocations for new school buildings.

HEALTH

The department of health has been allocated R187.5 billion.

  • An additional R885 million has been added to support the implementation of the universal test-and-treat policy for HIV.

  • R600 million for the commissioning of the new Nelson Mandela Children’s Hospital .

  • Provincial hospital services will be R32.3 billion of the overall health budget.

  • Government moves towards the next phase of the implementation of National Health Insurance.

PERSONAL TAXES

  • Those earning more than R1.5 million p/a will be taxed 45% of their taxable income.

  • People who earn between R708,000 and R1.5 million will be taxed 41%.

SIN TAXES

  • Wine will go up by 30 cents a litre, while the tax on spirits will increase by about R4.50 a bottle.

  • Excise duties on a packet of 20 cigarettes will increase to R14.30 from R13. 24.

  • The tax on a 340 mil can of beer will increase by about 12 cents a can.

  • Motorists will cough up 30 cents more per litre for petrol.

  • The Road Accident fund levy rises by 9 cents.

  • Sugar-sweetened beverages will be taxed 2.1 cents per gram (only when the sugar content exceeds 4grams per 100ml of a beverage)

SOCIAL GRANTS

  • The increase in social grants will come into effect on 1 April 2017 with a R180 billion stake from the overall national budget.

  • Old age grant for over 60-year-olds to increase by R90 to R1,600 per month.

  • Old age grant for over 75-year-olds to also increase by R90 to R1,620 per month.

  • The disability and care dependency grant will R90 to also be R1,600 per month.

  • Foster care grants go up by R30 to R920 per month.

  • While child support grants increase by R20 to R380 per month.

WATCH: The 2017 Budget in 60 seconds