Mboweni’s latest budget: Ten things you need to know

South Africa, which is the country hardest-hit by coronavirus in Africa, has been through some really tough economic times over the past 12 months. 

Mboweni had the unenviable task of balancing the stimulation  of economic growth and fiscal restraint. 

Here are 10 things you need to know: 

* South Africa will allocate more than R10 billion for the purchase and delivery of vaccines over the next two years.  

* Government will stabilise government debt at 88.9 per cent of GDP in 2025/26 and the ratio will decline thereafter. 

*The South African economy is expected to rebound by 3.3 percent this year, following a 7.2 per cent contraction in 2020.  

*The Department of Tourism has reprioritised R540 million over the medium term to establish the Tourism Equity Fund as one of the measures to support the tourism sector recovery  

*Government expects to collect R1.21 trillion in taxes during 2020/21, which is about R213 billion less than expected. This is the largest tax shortfall on record. In 2021/22 government expects to collect R1.37 trillion. 

*Corporate income tax rate will be lowered to 27 percent for companies with years of assessment commencing on or after 1 April 2022 

*Personal income tax brackets will be increased by 5 percent, which is more than inflation. This will provide R2.2 billion in tax relief. Most of that relief will reduce the tax burden on the lower and middle-income  households. This means that if you are earning above the new tax-free threshold of R87 300, you will have at least an extra R756 in your pocket after 1 March. 

*Fuel levies will be increase by 27 cents per litre, comprising 15 cents per litre for the general fuel levy, 11 cents per litre for the Road Accident Fund levy and 1 cent per litre for the carbon fuel levy. 

 * Sin taxes will see another increase:

a. a 340ml can of beer or cider will cost an extra 14c

b. a 750ml bottle of wine will cost an extra 26c

c. a 750ml bottle of sparkling wine an extra 86c

d. a bottle of 750 ml spirits, including whisky, gin or vodka, will increase by R5.50

e. a packet of 20 cigarettes will be an extra R1.39c

f. 25 grams of piped tobacco will cost an extra 47c

g. And a 23 gram cigar will be R7.71 more expensive 

*Social assistance grants have been adjusted. 

1. A R30 increase for the old age, disability and care dependency grants to R1890.

2. A R30 increase in the war veterans grant to R1910.

3. A R10 increase in the child support grant to R460.

4. A R10 increase for the foster care grant to R1050