Budget Speech by the Minister of Finance of the Republic of South Africa, Mr. Pravin Gordhan. Cape Town, 22 February Honourable speaker. Feb 27, Read the full National Budget Speech document delivered by Finance Finance Minister Pravin Gordhan alongside ministry of finance officials As we pointed out in the Budget, global economic uncertainty will. Feb 22, Minister of Finance Pravin Gordhan will be in the spotlight as he delivers the government’s Budget Speech.
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The global environment Allow me to reflect briefly, Mister Speaker, on the global environment and the historic shift in economic power that is taking place.
A new competitiveness enhancement programme has been initiated as part of the industrial policy action plan, building on existing production incentives in the automotive and clothing and textile sectors. The Land Bank receives R1 billion to conclude its recapitalisation. Tax treatment of medical expenses As from 1 March the tax credit for contributions to medical schemes will be introduced, at a rate of R a month for the first two beneficiaries and R each for additional beneficiaries.
Capital gains tax The introduction of capital gains tax in October was an important step in broadening the tax base. Tax on financial transactions South Africa has a financial transaction tax on securities transfers, at a rate of 0. A sustainable fiscal framework, based on the principles of counter-cyclicality, debt sustainability and intergenerational equity underpins our growth strategy.
Contact the hotlines in government departments. We will not turn away from our challenges. Medium-term priorities in health spending include hospital infrastructure, the comprehensive HIV and Aids treatment and prevention programme, and expanding health professional training.
There was a welcome recovery in job creation duringbut employment has not yet returned to its peak and the unemployment rate remains high at We remain steadfast in gordhaan the challenges of creating jobs, reducing poverty, building infrastructure and expanding our economy. It is right that we should look for many ways of supporting enterprise development, in many different settings and circumstances — in urban and rural areas, in agriculture, manufacturing and service gorchan.
Dividends tax The secondary tax on companies will be terminated on 31 March and a withholding tax on dividends will be implemented on 1 April This means that government departments and pravjn that do not spend, underspend or mis-spend their allocated funding, will be at risk of losing the allocations.
The Budget is our collective statement, and it has benefited from many constructive contributions.
Today, the western dominance of at least two centuries is under severe challenge. Proposals will be published for simplifying and modernising procedures for cross-border investments in and out of South Africa.
SECTION27’s statement on the Budget Speech – Section 27
Excise duties on tobacco and speech products Dhiveshan Naicker has offered the following tip, Mister Speaker: An amount of R million is earmarked for transfer to Alexkor for the finalisation of obligations to the Richtersveld Community joint venture. Special emphasis is given to improving competitiveness in industry, investment in technology, encouragement of enterprise development and support for agriculture. In order to contribute to a further reduction budyet the toll burden, a special appropriation of R5.
Every one of the last hundred years has seen our nation overcome obstacles that seemed insurmountable. A further R million is allocated for the initial work on rebuilding five major tertiary hospitals. Budvet creation is a central priority of government. The difficult task of moderating and reversing inequality requires active government budgrt. If that is their attitude to their own tax compliance, one shudders to think gorddhan advice they are giving to their clients!
South Africa has deep and liquid capital markets, through which long-term capital can be raised at competitive rates by government, state enterprises and the private sector. Not just by government. Job creation Job creation is a central priority of government. It is my privilege to introduce the third budget of President Zuma’s administration.
I thank Cabinet colleagues for their backing, even when further haircuts have been proposed. Real growth in non-interest expenditure averaging 2. In harnessing all the resources at gordham disposal, we have to do more, with less; we have to work smarter and harder. A reduction in the budget deficit from 4.
The inclusion of financial derivatives in the base of the securities transfer tax is also under consideration. This is good advice. There can be no compromise on prvain basic principles of sound financial management in ensuring that resources are mobilised efficiently to serve our people.
Growing inequalities in income and wealth have undermined economic growth and social well-being. As a major mining economy, we should be benefiting more from the continued buoyancy in commodity markets internationally. In each of these areas there are steps proposed over the three-year period ahead. In brief, Mister Speaker, today’s budget advises the following: Given the current global economic context, there is understandable caution in the business sector about investment and future growth prospects.
Allow me to return briefly, Mister Speaker, to the central policy challenges we gordhaan — growth of our economy, more rapid job creation and reducing poverty. But the key consideration, Mister Speaker, is the impact and economic viability of our infrastructure investments.
The legacy of our past is not only that of difficulty and despair. The Industrial Development Corporation similarly invests directly in income-generating projects, in partnership with other investors. Our thanks also go to: While there are signs of a revival in the US economy, much of Europe is in recession, and significant financial risks cloud the global economic outlook.
I want to thank Sspeech Mthetwa and Radebe for the cooperation of departments spwech agencies under their control. The new system will provide equitable health coverage for all South Africans.
We have to say to our people that economic uncertainty will be with us for some time, yet we have a programme of economic change that can steadily roll back unemployment, poverty and inequality. Within the trade environment, customs officials will continue to focus attention on under-valuation of imports, especially in textiles, using a reference price database which industry is helping to update.
Pravin Gordhan`s budget speech – DOCUMENTS | Politicsweb
bordhan There are many ways in which job creation for young people might be accelerated. We need parents to work with the state to deliver quality education, community leaders that will help protect neighbourhoods; business leaders and trade unions to grow the economy; investors to create jobs. The idea of unity in action, working together to realise practical goals, must be revived.