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Head: Expenditure Cuts, Tax Hikes To Cut Budget Deficit To 3.2%
Head: Expenditure Cuts, Tax Hikes To Cut Budget Deficit To 3.2%
2015/16
2016/17
STATE OLD AGE GRANT
R1 415
R1 505
STATE OLD AGED GRANT, OVER 75s
R1 435
R1 525
WAR VETERANS GRANT
R1 435
R1 525
DISABILITY GRANT
R1 415
R1 505
FOSTER CARE GRANT
R860
R890
CARE DEPENDENCY GRANT
R1 415
R1 505
CHILD SUPPORT GRANT
R300
R350
Treasury has also committed to reprioritising R31.8 billion over the next
three years to meet new spending needs, such as higher education,
drought relief and contributions to the New Development bank
Head: Govt to halt new hires, review big SOC contracts
As part of a money-saving drive aimed at narrowing the countrys
increasing budget deficit, National Treasury has announced a freeze on
appointments to administrative and managerial positions in government
from April.
[New appointments] will be blocked on governments payroll system
starting in April. The National Treasury, working with provincial treasuries
and the Department of Public Service and Administration, will consider
authorising appointments only after departments have submitted clear
human resource plans aligned with reduced compensation budgets and
greater efficiency, read the 2016 National Budget, released yesterday.
Treasury further outlined that these plans would trim the employment of
non-critical personnel, eliminate supernumerary positions and
establish a sustainable level of authorised, funded posts that would be
closely monitored in the years ahead.
Teachers, nurses, doctors, police officers and other posts deemed critical
would be excluded from the lock.
Treasury, meanwhile, announced yesterday that it was currently reviewing
all contracts across government valued at over R10 million to ensure
value for money, reduce wastage and identify irregular procurement.
The primary focus of this review is on all state-owned companies (SOCs)
such as Prasa, Eskom, Transnet, SABC and SAA, it said in a statement.
The map below highlights in red the new municipalities that will be
created through the merger of existing municipalities.
Presidents salary:
The Presidential salary is set to increase from R3.1 million a year in
2015/16 to R3.3 million in 2016/17, R3.4 million in 2017/18 and R3.6
million in 2018/19, representing an annual average growth rate of 5.4%,
the 2016 National Budget has revealed.
Plastic Bag Levy:
Governments plastic bag levy, which has been in place for ten years and
which aims to counter the dispersion of plastic bags, has been increased
from 6c to 8c a bag, effective April 1. This is the first increase since 2013.
Sugar Tax:
growth has narrowed per capita income and hobbled the buying power
of the ordinary South African.
In other words, the average South African is becoming poorer, the
2016 National Budget read.
Lower rates of economic growth reduce government revenue,
undermining the states ability to sustain spending on core social and
economic programmes.
While global factors play a strong role, Treasury outlined that growth in
South Africa continues to diverge from the world average.
Governments projected GDP growth has been revised down to 0.9%
for 2016, as low commodity prices, heightened financial market
volatility, and diminished consumer and business confidence weigh on
the countrys economic outlook.
Moreover, the most severe drought in 20 years has resulted in
declining agricultural output and food price inflation, raising the
prospect of increased hunger and poverty across Southern Africa.
Constrained electricity supply also continues to limit growth and deter
fixed investment, said Treasury.
It added that deterioration in the credit-rating outlook towards the end
of 2015 was followed by changes in the finance portfolio, catching
investors off-guard and raising questions around fiscal probity.
Treasury expects South Africas GDP growth rate to gradually recover
over the medium-term, as electricity availability improves and
confidence returns.