The budget in a nutshell as tabled by Minister Enoch Godongwana on 22 February 2023 in Cape Town.
Economic outlook
Global : Since the 2022 Budget global growth estimates for 2023 have been revised lower. The International Monetary Fund projects global growth to slow from an estimated 3.4 per cent in 2022 to 2.9 per cent in 2023.
Domestic Outlook: At R4.6 trillion the size of the SA economy in 2022 was bigger than the pre-pandemic levels. Real GDP growth is projected to average 1.4 per cent from 2023 to 2025, compared with 1.6 per cent estimated in October
In digital telecommunications we will soon switch-off the analogue signal and finalise the migration to digital signal. This will unlock the benefits of the spectrum auction and unleash renewed investment in the sector.
Secondly, R337 billion of Eskom’s debt is already government guaranteed.
We are proposing a total debt-relief arrangement for Eskom of R 254 billion.
MUNICIPAL DEBT At the end of December 2022 Municipalities owed Eskom R56.3 billion and the debt is rising.
- Transport and logistics will spend an estimated R351.1 billion, including for SANRAL to improve the road infrastructure network.
Water and sanitation is planned to spend R132.5 billion over the next three years, mainly by the water boards.
Revenue and tax proposals
Tax revenue collections for 2022/23 are expected to total R1.69 trillion.
The general fuel levy and the Road Accident Fund levy will not be increased this year.
Government proposes an increase in the excise duties on alcohol and tobacco of 4.9 per cent in line with expected inflation. This means that the duty on: a 340 millilitre can of beer increases by 10 cents.
- A 750 millilitre bottle of wine goes up by 18 cents,
- A 750 millilitre bottle of spirits will increase by R3.90
- A 23 gram cigar by R5.47.
- And on a pack of 20 cigarettes, the duty rises to 98 cents.
R66 billion is allocated to Social Development over the medium term, with R36 billion to fund the extension of the COVID-19 social relief of distress grant until 31 March 2024.
R30 billion will be used for inflation-linked increases for other social grants. As a result: • The old age and disability grants increase by R90 on 1 April 2023 and a further R10 on 1 October 2023. The result is a total increase to R2090.
- The child support grant rises from R480 to R510 on 1 October 2023, while the foster care grant increases from R1070 to R1130 over the same period.
- R23 billion and R22 billion will be allocated to Health and basic Education respectively, to cover the shortfall in compensation budgets and to improve services. •
- The South African Police Service is allocated R7.8 billion to appoint 5,000 police trainees per year.
- The National Prosecuting Authority receives R1.3 billion to support the implementation of the recommendations of the State Capture Commission and the Financial Action Task Force.
- The Financial Intelligence Centre is allocated an additional R 265.3 million to tackle organised and financial crime.
- The Special Investigating Unit is allocated R100 million to initiate civil litigation in the special tribunal, flowing from proclamations linked to the recommendations of the State Capture Commission.
- The Department of Defence is allocated an additional R3.1 billion to enhance security on South Africa’s borders.
SARS – Capital and ICT projects The Bill proposes an allocation of R45.6 billion to provide for the carry-through costs of the 2022/23 public-service wage increase.
R1 billion is allocated to South African Airways to assist the carrier with the business rescue process.
The South African Post Office is allocated R2.4 billion.
Disasters : R695 million is available in this financial year for immediate relief. A further R1 billion will be available next year.
DIVISION OF REVENUE – Relative to the 2022 Budget direct provincial allocations increase by R92.7 billion to R2.17 trillion over the medium term.
Local government allocations will increase by a total of R14.3 billion, made up of R8.1 billion in the local government equitable share and R6.2 billion in direct conditional grants.
Comments are closed.