- State to spend R827bn on infrastructure
- Bigger health budget to roll out NHI
- More money for school infrastructure
- Gateway to Africa reforms extended to Brics nations
- R360m in tax relief for small businesses
- Treasury probes contracts worth R8.4 billion
- Rise in alcohol, cigarette prices
- Employment tax incentive proposed by Treasury
- Cash boost for poor municipalities
- Old age grant test to be scrapped
- Long-awaited carbon tax to come into effect in 2015
- Gordhan announces proposals on retirement reform
Amid continuing global economic uncertainty, South Africa continues to experience growth and has weathered the storm with a stable fiscus, the Minister of Finance Pravin Gordhan said on Thursday.
Presenting a R1.06 trillion 2013 National Budget in the National Assembly, Gordhan said despite the still troubled world economic outlook, the world economy had shown signs of improvements.
He said South Africa’s economy has continued to grow, but at a slower rate than projected in last year’s Budget.
Gross Domestic Product (GDP) growth reached 2.5% last year and the country is expected to grow at 2.7% this year, rising to 3.8% in 2015.
Inflation will remain moderate with consumer prices projected to increase by an average of 5.5% a year over the next three years.
The budget deficit will fall from 5.2% of GDP in 2012/13 to 4.6% in 2013/14 and 3.1% in 2015/16.
Gordhan attributed the large budget deficit – amounting to a revenue shortfall of over R16 billion – to the economic turbulence the country experienced in the second half of last