Finance Minister Mr Pravin Gordhan outlined the country’s budget yesterday. He said he sought budget pointers on what government does well.
“On what we do well, South Africans have very clear views: tax administration and pay social grants.”
Five things you need to know about the budget
Sugar tax to be imposed on fizzy drinks
Gordhan proposed that a tax be imposed on sugar-sweetened beverages as of April next year. Duties on alcoholic beverages and tobacco products are also to increase by between six and 8,5 per cent.
Social grants
R11,5 billion is to be added over the next three years, taking into account projected increases in the cost of living.
Drought relief
R1,1 billion was reprioritised for drought relief in 2015/16 and additional allocations to respond to the drought “will be made, as required, in the adjustment allocation later this year.”
The land bank has set aside a concessionary loan to assist farmer in recovering from the impact of the drought.
Where is state funding for new students?
The minister announced that R16,3 billion will be allocated for higher education over three years.
Of this R5,7 billion is to keep 2016 academic fees at 2015 levels. R2,5 million is for NSFAS to clear outstanding debt and R8 million for current students to complete their studies.
Health
Gordhan supports the health minister’s white paper on national health insurance: public health service delivery improvements must be prioritised and the private health and medical scheme environment is needed.
“Treasury will shortly release further details on financing aspects,” he said.
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