Highlights of the 2014 Budget

-- Budget deficit of four percent of GDP expected for 2013/14, narrowing to 2.8 percent in 2016/17;

 

-- Debt stock as percentage of GDP to stabilise at 44.3 percent in 2016/17;

 

-- Tax revenue for 2013/14 expected to be R1 billion higher than projected in 2013 budget;

 

-- Real growth in non-interest spending to average 1.9 percent over next three years;

 

-- National and provincial government expenditure on travel, catering, consultants and other administrative payments declines as a share of spending;

 

-- Expenditure ceiling commits government to spending limits of R1.03trn in 2014/15, R1.11trn in 2015/16 and R1.18trn in 2016/17.

 

 

SPENDING PROGRAMMES: Over the next three years, government will spend:

 

-- R410bn on social grants;

 

 

-- R15.2bn on the economic competitiveness and support package;

 

-- R8.5bn on the Community Work Programme;

 

-- R8.7bn on settlement of land restitution claims;

 

-- R7bn for subsistence and smallholder farmers;

 

-- R78bn on university subsidies and R19.4bn for the National Student Financial Aid Scheme;

 

-- R34.3bn on school infrastructure;

 

-- R22.9bn to upgrade commuter rail services;

 

-- R143.8bn to support municipal infrastructure;

 

-- R42bn on the HIV and Aids conditional grant.

 

 

TAX PROPOSALS:

 

-- Personal income tax relief of R9.3bn;

 

-- Adjustments to tax tables relating to retirement lump-sum payments;

 

-- Measures to encourage small enterprise development;

 

-- Clarity on valuation of company cars for fringe-benefit tax purposes;

 

-- Reforms to tax treatment of the risk business of long-term insurers;

 

-- Amending rules for VAT input tax to combat gold smuggling;

 

-- Measures to address acid mine drainage;

 

-- Adjustment of the proposed carbon tax and its alignment with desired emission-reduction outcomes identified by the environmental affairs department.

 

 

- Sapa