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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However cool and detached we may strive to be in our analysis, the fact remains that we are deeply involved and interested parties and the solutions we adopt are solutions we ourselves have to implement. Financial management and combating fraud and corruption Following on the announcements made previously to introduce measures to improve financial management and help combat corruption, I can report that there has been progress on several fronts.
A budget deficit of 4. The bill is expected to be promulgated and most of its provisions brought into force in As from 1 March the tax credit for contributions to medical schemes will be introduced, at gy rate of R a month for the first two beneficiaries and R each for additional beneficiaries.
Mister Speaker, whereas several nations around the world are confronting severe austerity measures and significantly higher taxes, we are able to propose tax relief of R2. Medium-term priorities in health spending include hospital infrastructure, the comprehensive HIV and Aids treatment and prevention programme, and expanding health professional training.
Social security reform and the phasing in of national health insurance will improve the effectiveness and coherence of redistribution through the fiscus. These reforms will significantly improve the fairness of the personal income tax system.
In harnessing all the resources at our disposal, we have to do more, with less; we have to work smarter and harder. An expansion in infrastructure investment is one of the central priorities of the Budget.
Overview of the Budget We remain steadfast in addressing the bucget of creating jobs, reducing poverty, building infrastructure and expanding our economy. Mister Speaker, we can be proud of the collective wisdom and will of our government in making the tough decisions that have kept our fiscus on a sustainable track. The sector receives additional funding of R7.
Many firms have accumulated large cash balances instead of investing them or distributing to shareholders. I want to thank Ministers Mthetwa and Radebe for the cooperation of departments and agencies under their control. speefh
Budget Speech by the Minister of Finance of the Republic of South Africa, Mr. Pravin Gordhan
Mister Speaker, I am pleased to advise that there will be further tax relief for small businesses and micro-enterprises. The Minister of Trade and Industry has published draft legislation to provide for the creation of special economic zones.
The secondary tax on companies will be terminated on 31 March and a withholding tax on dividends will be implemented on 1 April We now need to introduce a new dynamism among all Gordyan Africans.
Growing inequalities in income and wealth have undermined economic growth and social well-being. The fiscal framework A sustainable fiscal framework, based on the principles of counter-cyclicality, debt sustainability and intergenerational equity underpins budgey growth strategy.
Given the current global economic context, there is understandable caution in the business sector about investment and future growth prospects. As set out in the Climate Change Response White Paper approved by Cabinet inthe need to price carbon emissions and the phasing in of a tax instrument for this purpose are accepted.
Corporate tax measures Several measures are set out in the Budget Review to improve the corporate tax environment, Mister Speaker: Additional allocations of R9.
An additional R million is allocated to improve university infrastructure, including student accommodation facilities. The first round of over 1 MW of renewable energy projects was recently successfully tendered to independent power producers. This year, a pre-budget consultation was held with the Nedlac constituencies.
I turn now, Mister Speaker, to the revenue estimates and tax proposals. Allow me to reflect briefly, Mister Speaker, on gorfhan global environment and the historic shift in economic power that is taking place. Today they number almost million.
Nudget are initiatives which have strong community-based employment benefits, and they are allocated an additional R1. R million goes to municipalities to install low-energy lighting and equipment. Today they number almost million.
Our thanks also go to:. I am happy to confirm that the project will qualify for VAT relief, which will surely give Minister Pandor the winning edge in this contest. Job creation is a central priority of government. These projects are funded in xpeech ways: It is a story that must be written by all of us.
Progress in these areas will strengthen the public health system, paving the way for the introduction of national health insurance.
We must soeech this in order to restore the trust of our people in our capacity to govern.
Allow me to return briefly, Mister Speaker, to the central policy challenges we face — growth of our economy, more rapid job creation and reducing poverty. We need stronger rules, as government, to ensure that legitimate creditors are paid within the legally prescribed 30 day period. There is also much to be done to prwvin market conduct practices in the financial sector.