Here are the highlights of Finance Minister Pravin Ghordan's first Budget speech:

The economy


  • Economic growth of 2.3% forecast for 2010, increasing to 3.6% by 2012;
  • Unemployment up to 24.3% in 2009;
  • The 2010 Fifa World Cup could contribute 0.5% of GDP growth in 2010. To date government has spent R33bn on preparations;
  • Inflation should average 6% during 2010/11;
  • A budget deficit of 7.3% projected for 2009/10 and 6.2% for 2010/11;
  • The deficit should reach 4.1% by 2011/12;
  • Government's net loan debt projected to rise to R1.3trn in 2012/13;
  • Wage subsidy for young people proposed;
  • Infrastructure investment of R845bn over the next three years;
  • Government will spend R52bn on public works programmes in the next three years.
Spending


  • R12.2bn for social grants;
  • R2.7bn on literacy and numeracy;
  • R15.1bn on occupation specific dispensations (education, military, prisons);
  • R2.2bn on revising SANDF salaries;
  • R8.4bn on expanding antiretroviral therapy;
  • R2.5bn on increasing labour intensity in public works;
  • R1.8bn on clothing/textile incentives;
  • R1.8bn on automotive production development;
  • R1bn on the criminal justice sector;
  • R2.8bn on public transport (as well as road and rail infrastructure);
  • R6.7bn on covering the increased cost of providing free basic electricity;
  • R2.5bn on municipal infrastructure;
  • R1.5bn on the Land Bank to help rural development;
  • Old age pension increased by R70/month to R1 080;
  • Child support increased by R10/month.
Tax proposals


  • Personal tax relief of R6.5bn;
  • No more SITE (Standard Tax on Employees);
  • Fuel tax increases to total 25.5c/litre;
  • Cigarettes will cost R1.24 more per packet;
  • Booze up by between 6.5c (for a bottle of beer) to R2.22 (for a bottle of spirits).
- Fin24.com