Citizen Reporter
Reporter
9 minute read
22 Feb 2017
3:40 pm

#Budget2017 highlights

Citizen Reporter

Finance Minister Pravin Gordhan delivered the national budget in Parliament this afternoon. In case you missed the speech, here are the highlights.

Finance Minister Pravin Gordhan delivering his 2016 Mid Term Budget Speech in Parliament, Cape Town.26/10/2016 gcis

 Catch all the updates from our live report earlier here.

ALSO READ: Full 2017 Budget speech

15: 30 Gordhan: Members of the House will join me in expressing appreciation to staff of the National Treasury, the SA Reserve Bank.

15: 31 Gordhan: This is the time for activists, workers, businesspersons, clergy, professionals & citizens to engage in shaping the transformation agenda.

15: 32 Gordhan: We also need to consider, whether we should supplement our Constitutional Bill of Rights with a “Charter of Economic Rights”.

15: 33: Gordhan: Poet S.E.K Mqhayi wrote: “Kukhonza mnye ukuze kuphile abanye,” (Somebody has to serve, so that others can live.)

15: 33 Gordhan: Can we, in this spirit, say: we have built a better South Africa?

15: 34 Minister of Finance Pravin Gordhan tables #Budget2017 to parliament through the Speaker.

15: 35 End of budget speech.

Tweets

https://twitter.com/MbalulaFikile/status/834379890476609536

Earlier 

15: 12 Gordhan: The old age grant will increase by R90 to R1600 for pensioners over the age of 60, and R1620 for those over 75.

15: 12 Gordhan: The disability and care dependency grants also increase by R90 to R1600 a month.

15: 13 Gordhan: The child support grant increases by R20 to R380 a month.

15: 14 Gordhan: Public procurement is an important strategic vehicle for developing local industries, broadening economic participation and creating work.

15: 14 Gordhan: Where large firms are awarded tenders of R30 million or more, 30 per cent of the contract value must go to small or black-owned enterprises.

15:15 Gordhan: Procurement authorities are now empowered to set clear targets to promote black owned and women-owned businesses.

15: 16 Gordhan: Procurement Bill will be published shortly. It will establish a single procurement authority and will consolidate fragmentation.

15: 17 Gordhan: Where fraud or corruption is identified, action must be taken.

15: 18 Gordhan: A single procurement authority will consolidate fragmented regulatory environment, in keeping with section 217 of the Constitution.

15: 19 Gordhan: We have seen with the Competition Commission investigation, evidence of a collusive culture at trading desks in banks.

15: 20 Gordhan: Collusion must be stamped out whether it is in banking, construction or the bread industry.

15: 20 Gordhan: Progress has been made in transforming the financial sector, more needs to be done to broaden access via more affordable financial services.

15: 22 Gordhan: I am pleased to announce that we will work with partners at NEDLAC who have requested that a Financial Sector Summit take place in 2017.

15: 23 Gordhan: We have agreed to implement a minimum wage of R20 an hour with effect from next year.

15: 24 Gordhan: R1.5 billion fund to support small and medium enterprises has been established by private sector voluntarily.

15: 25 Gordhan: A youth employment service programme has been initiated, with the aim of creating a million work opportunities over 3 years.

15: 26 Gordhan: South Africans, wherever you are…. Own this process; defend your gains; demand accountability.

15: 27 Gordhan: ‘Be an active agent for change. Umanyano Ngamandla. Unity is power’

15: 28 EFF MP Mbuyiseni Ndlozi raises point of order, says there’s no guidance provided by President Jacob Zuma to the finance minister. Speaker Baleka Mbete dismissed his point of order.

15: 29 Gordhan: Our financial situation is difficult, but we have still produced a credible budget.

Earlier 

14: 55 Gordhan: The Provincial Roads Maintenance Grant allocated R10.8 bill – 2017/18, taking into account the increase in road traffic.

14: 56 Gordhan: To support higher density housing, subsidies for social housing have been rationalised.

14: 57 Gordhan: Over the medium term, R16.7 billion is allocated for 70 new train-sets for Metrorail.

14: 58 Gordhan: SANRAL receives R15.4 billion over the period ahead for strengthening and maintenance of the national road network.

14: 59 Gordhan: We have also seen investment in township precincts in response to the neighbourhood development partnership grant.

15:00 Gordhan: In Ekurhuleni, development along the corridor linking Tembisa to Kempton Park has been prioritised.

15: 01 Gordhan: In Johannesburg, there is further progress with the “corridors of freedom” linking Soweto, Alexandra, Sandton and the CBD.

15: 02 Gordhan: Cape Town has adopted a transit-oriented strategy including mixed-use development of the Bellville Transport Interchange.

15: 03 Gordhan: With transformation, we will see growth. Growth will strengthen the forces of transformation.

15: 04 Gordhan: Government is moving towards the next phase of the implementation of the National Health Insurance (NHI).

15: 05 Gordhan: NHI to expand the integrated school health programmes, including provision of spectacles and hearing aids.

15: 05 Gordhan: Improve services for people with disabilities, the elderly and mentally ill patients, including provision of wheelchairs.

15: 06 Gordhan: Spending on basic education next year will be over R240 billion, or 17.5 per cent of the consolidated budget.

15: 06 Gordhan: Allocations for school building increase at 12.5 per cent a year.

15: 07 Gordhan: Spending on learning and teaching support materials increases by 9.5 per cent over the next three years.

15: 07 Gordhan: Government recognises the needs articulated by students in universities and TVET colleges.

15: 08 Gordhan: The Higher Commission of Inquiry into Higher Education and Training will complete its work by June this year.

15: 09 Gordhan: Government is determined to address the challenges identified in post-school education and training in a phased manner.

15: 10 Gordhan: Government stands ready to engage with education stakeholders & adapt financing arrangements as may be required in future years.

15: 10 Gordhan: A growing contribution is needed from employers and industry through funding of bursaries, internship opportunities and research programmes.

15: 11 Gordhan: Together, we will find a way forward that meets student funding needs fairly and sustainably.

ALSO READ: Gordhan: It’s the president’s right to redeploy us

Earlier 

14: 41  Gordhan: 47.5% of available funds are allocated to national government, 43.4% to provinces & 9.1% to local government.

14: 42 Gordhan: Allocations to predominantly rural municipalities are twice as large, per household, than those to metropolitan.

14: 43 Gordhan: Improved oversight is needed to curb unauthorized expenditure.

14: 44 Gordhan: Three new conditional grants will take effect in 2017/18 to expand access to early childhood development and improve facilities.

14: 45 Gordhan: If we make progress in local financial management, we will transform the lives of millions of people.

14: 45 Gordhan: A growing economy makes more rapid transformation possible.

14: 46 Gordhan: About two-thirds of the Budget is dedicated to realising social rights.

14: 47 Gordhan: We have programmes that build infrastructure, support new businesses, empower small farmers, develop capabilities and incentivise job creation.

14: 47 Gordhan: We need a powerful combination of an energetic coalition with labour, business and civil society.

14: 48 Gordhan: Transformation goals: A commitment to eradicate gross inequality and share the benefits of growth.

14: 50 Gordhan: Improved education is a priority, i.e.the quality of basic literacy and numeracy achieved in the first phase of schooling.

14: 51 Gordhan: We must accelerate development of our cities, housing investment, improved public transport and urban enterprise and industrial development.

14: 52 Gordhan: South Africa’s integration & linkages with its regional neighbours offers significant opportunities.

14: 53 Gordhan: Last week I met members of the board of South African Airways to discuss its turnaround plans.

14: 54 Gordhan: We have also held constructive discussions with the new leadership of the Post Office.

Earlier 

14: 28 Gordhan: The proposed expenditure for 2017/18 totals R1.56 trillion.

14: 28 Gordhan: Projected revenues amount to R1.41 trillion.

14: 29 Gordhan: The balance of R149 billion, or 3.1 per cent of GDP, will be borrowed.

14: 29 Gordhan: Government debt now stands at R2.2 trillion, or 50.7 per cent of GDP.

14: 30 Gordhan: Substantial additional allocation to higher education is again proposed, adding R5 billion to the R32 billion previous.

14: 31 Gordhan: Citizens demand accountability to ensure public funds are used for their intended purposes.

14: 32 Gordhan: A new top personal income tax rate of 45 per cent for those with taxable incomes above R1.5 million.

14: 33 Gordhan: An increase in the dividend withholding tax rate from 15 per cent to 20 per cent.

14: 34 Gordhan: An increase of 30c/litre in the general fuel levy and 9c/litre in the road accident fund levy.

14: 34 Gordhan: Increases in the excise duties for alcohol and tobacco, of between 6 per cent and 10 per cent.

14: 35 Gordhan: The annual allowance for tax free savings accounts will be increased to R33 000.

14: 35 Gordhan: Further consultations are currently taking place on the tax on sugary beverages.

14: 36 Gordhan: The proposed carbon tax and its date of implementation will be considered further in Parliament this year.

14: 37 Gordhan: Multinational corporations continue to use inconsistencies in global tax rules to their advantage and to avoid tax.

14: 38 Gordhan: SARS has already received disclosures of R3.8 billion in foreign assets, which will yield revenue of about R600 million.

14: 39 Gordhan: The funds after providing for debt service costs and a contingency reserve increase by 6.9% to R1.24 trillion in 2018.

Earlier 

14:17 Gordhan: Our state-owned companies & finance institutions play a substantial role in infrastructure investment and financing development.

14: 18 Gordhan: Government and business leaders throughout the world have had to reflect on the deficit of trust and loss of social solidarity.

14: 19 Gordhan: The services sector was the main contributor to growth in 2016, bringing nearly 120 000 new work opportunities.

14: 20 Gordhan: Mining and manufacturing employment declined by 80 000 jobs in 2016.

14: 21 Gordhan: Commodity prices have rebounded.

14: 21 Gordhan: Electricity supply has improved, allowing new connections and industrial demand to be accommodated.

14: 21 Gordhan: “Ditau ge di shumishana di ka bolaya nare.” (If lions work as a team they will bring down even a buffalo.)

14: 22 Gordhan: R3.9 billion for small, medium and micro enterprises and cooperatives.

14: 22 Gordhan: R4.2 billion for industrial infrastructure in special economic zones and industrial parks.

14:23 Gordhan: R1.9 billion for broadband implementation.

14: 23 Gordhan: An additional R494 million for tourism promotion.

14: 24 Gordhan: Spending on agriculture, rural development and land reform amounting to nearly R30 billion by 2019/20.

14: 25 Gordhan: The services sector was the main contributor to growth in 2016 bringing nearly120 000 new work opportunities.

14: 25  Gordhan: After several years of tentative economic growth, there are signs that a more sustainable recovery might be under way.

14: 26 Gordhan: We must continue to confront cartels and collusion robustly and provide new opportunities for access to markets.

14: 26 Gordhan: Transformation must achieve a more balanced structure of ownership and control in our economy.

14: 27 Gordhan: Transformation must result in an economy that belongs to all, black and white, where the legacy of race domination is no longer visible.

Earlier 

14: 04 Finance Minister Pravin Gordhan is on the podium now.

14: 07 Gordhan quotes the Freedom Charter -“South Africa belongs to all who live in it.”

14: 08 Gordhan reiterates the Constitution’s compulsion that it applies to all who live in South Africa.

14: 09 Gordhan says the Constitution imposes obligations on government and has implications for business sector and all stakeholders.

14: 10 Gordhan: Income growth has been uneven – the bottom 20 per cent have benefited from social grants and better access to services.

14: 11 Gordhan: 35 per cent of the labour force are unemployed or have given up hope of finding work.

14: 12 Gordhan: Our towns and cities remain divided and poverty is concentrated in townships and rural areas.

14:13 Gordhan: Our growth has been too slow – just 1 per cent a year in real per capita terms over the past 25 years.

14: 14 Gordhan: These, among other factors, are also driving a case for radical transformation of economic models, & a call for inclusive growth.

14: 15 Gordhan: Tough choices have to be made to achieve the development outcomes we seek.

14: 15 Gordhan: We have a plan for a more inclusive, shared economy. Its implementation requires greater urgency and collaboration.

14: 16 Gordhan: An additional R28 billion will be raised in taxes.

14: 16 Gordhan: Government debt will stabilise at about 48 per cent of GDP over the next three years.

14: 16 Gordhan: Government’s wage bill has stabilised.

14: 17 Gordhan: Procurement reforms continue to improve the effectiveness of public spending.

For more news your way, follow The Citizen on Facebook and Twitter.