How the budget speech will affect Newcastillians
From fuel to cigarettes and alcohol, South Africans have been urged to tighten their belts.
Minister of Finance, Pravin Gordhan, advised South Africans to tighten their belts during his delivery of the 2016/2017 budget speech in Parliament yesterday.
Here’s what you need to know:
Drought alleviation
Minister Gordhan has set aside 502 billion Rands in order to assist drought affected areas, and concerted effects to protect natural springs and repair boreholes are in the pipelines.
“Strategic plans to restructure the water sector are in place,” said Minister Gordhan.
For drought stricken areas, like Vryheid, this could come as a relief.
Education
254 Billion Rands is allocated to Basic Education and 8 Billion Rand will be set aside for students who have not completed their studies. They will now have the opportunity to do so via bursaries and government scholarships. Tertiary fees are set at a zero per cent increase as previously decided.
Read more stories about education in our area by clicking on one of the links below:
Mining for answers in the wreckage of education
Dealing with disappointing exam results
SA’s youngest doctor hails from Newcastle
Congratulations to 2015 matriculants
792 Newcastle pupils promoted to matric after failing Grade 11
For more schools news from Newcastle and surrounding areas, click here.
Health Care
4.5 Billion Rand was assigned to revitalise health care and the introduction of the National Health Insurance (NHI).
100 Billion Rand is budgeted towards Anti-Retroviral Treatment and HIV support.
Click on the links below to read more about the NHI in Newcastle:
Newcastle Provincial Hospital to receive boost from NHI
Two NHI projects take root in district
MEC to speak on National Health Insurance
Social Grants
Pension grants are scheduled to increase by R80 to R1 500.
Disability grants will gain a R10 increase to R1 420.
Child support grants to increase by R20 to R 350.
Foster care grants will go up by R30 to R 890.
Tax on sugar
The new tax on sugar has been introduced in this year’s budget speech. From now, consumers will have to pay tax on sugary drinks.
“In an attempt to encourage South Africans to cut down on their sugar intake a sugar tax has been introduced,” said Minister Gordhan.
Cigarettes and Alcohol beverages
Consumers will now have to fork out a whole lot more than planned, in order to indulge in cigarettes and alcohol beverages.
“A 6.7 per cent increase in cigarettes and 8.7 per cent increase in alcohol is expected in the 2016/2017 financial year,” announced Minister Gordhan.
Fuel levy
A decision by government to increase the fuel levy by an additional 30 cents was predicted, especially during the time of low fuel prices. Minister Gordhan said the increase was inevitable.
Click here to see what researchers had to say about an anticipated ‘huge drop’ in petrol prices, coming in March.
