cloud 9 blog

for those that want to read the full speech read it here

for the others who are lazy, here are some highlights from a quick glance through the budget speech:

• growth expectation for 2010 is now 2.3 per cent, rising to 3.6 per cent by 2012
• Reserve Bank will continue to pursue a target for CPI inflation of 3 to 6 per cent
• public debt is expected to rise from 23 per cent of GDP in 2008/09 to about 40 per cent in 2013, and will only stabilise in 2015
• As a result of the deterioration in the South African economy, we now expect to raise R69 billion less in tax this year than we budgeted. Consolidated revenue will be R658 billion in 2009/10, which is R32 billion less than in the past fiscal year.
• To support further broadening of access to medical scheme membership, the monthly monetary caps for deductible medical scheme contributions are also increased. Taking into account the effect of the tax system on savings, the annual tax-free interest income will be increased from R21 000 to R22 300 for individuals below 65 years and from R30 000 to R32 000 for individuals 65 years and over.
• It is proposed to increase taxes on fuel by 25.5 cents a litre. This includes a 7.5 cents a litre increase to contribute to the funding of a new multiproduct petroleum pipeline between Durban and Gauteng, and an increase of 8 cents a litre in the road accident fund levy
• the consolidated budget of government for next year is R907 billion and over the next three years, we will be spending R2.9 trillion. The fiscal framework makes provision for an increase in spending over the MTEF period amounting to R87 billion. In addition, about R25.6 billion has been identified through savings. So in total, we are able to add R112 billion to the baselines of departmental budgets.
• The total budget for education next year is R165 billion.
• In 2010/11, R89 billion will be spent on social grants. Provision has been made for the phased extension of the child support grant up to a child’s 18th birthday. The state old age pension and the disability grant rises by R70 to R1 080 a month. The child support grant increases by R10 to R250 a month. We recognise that the increase in the child support grant is slightly below the inflation rate, but the social benefit and the cost of bringing in two million more children implies that we have to adjust this grant more moderately.
• The sin tax increases mean a packet of 20 cigarettes will cost R1.24 more, while a bottle of beer (340ml) and a bottle of wine (750ml) will cost 6.5c and 12c more respectively.
• A bottle of spirits (750ml) will cost R2.22c more.
• Actual sin tax hikes were all above inflation. Excise duty on beer, wine and spirits increased by about 8%, while the excise duty on cigarettes was a little more than 16%.
• The excise duty on traditional beer was maintained at 7.82c per litre, while that on cigars was hiked 6.2%.

that’s all i’ve seen so far, if i have missed anything please let me know and i’ll add it into the summary.