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Budget 2022: This is where your tax money goes

Budget 2022 also shows where your tax money is going and the good news is that there will indeed be more money for law enforcement, supporting vulnerable households and teachers.

Finance Minister Enoch Godongwana said that as we face steep and daunting challenges, we will overcome and to do this we need to strike a balance between saving lives and livelihoods while supporting inclusive growth.

“This budget provides this balance,” he said.

Tax collections have been much stronger than expected, with 2021/22 tax revenues estimated at R1.55 trillion, R62 billion higher than estimates from four months ago.

He pointed out, however, that while the fiscal outlook has improved, there are significant risks to the fiscal framework, including a slowdown in global and domestic economic growth, calls for permanent increases in social protection exceeding available resources, pressure from public service wages and ongoing requests for financial assistance from financially distressed state entities (SOEs).

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This is where your tax money goes

One of the most important aspects of the budget is that it shows where taxpayers’ money is going. This includes:

  • R17.5 billion for catalytic infrastructure projects
  • R15 billion for small business loan guarantees
  • R20 billion for the total support package through the bounce-back scheme
  • R76 billion for job creation programs
  • an additional R18.4 billion for the Presidential Employment Initiative
  • R3.33 trillion over the next three years for social wages to support vulnerable and low-income households
  • R32.6 billion for financial support to current scholarship holders and freshmen
  • R24.6 Billion for Provincial Education Departments to Address Teacher Compensation Shortcomings
  • an additional R15.6 billion for provincial health departments to support their ongoing response to COVID-19 and bridge shortfalls in essential goods and services
  • R3.3 billion to take in medical interns and community doctors
  • R8.7 billion for the police budget and R1 billion to implement personnel reforms, as well as another R800 million in the following year, subject to satisfactory progress
  • An additional R1.1 billion for the Ministry of Justice and Constitutional Development budget, while the Office of the Chief Justice receives an additional R39.9 million
  • An additional R9.9 billion to the South African National Roads Agency (SANRAL) for maintenance of the non-toll road network
  • R2.1 billion for raising the Clan William Dam
  • R1.4 billion for the Lepelle Water Board for the Olifantspoort and Ebenezer factories
  • R813 million for the Umgeni Water Board for the Lower uMkhomazi Water Supply Scheme
  • R5 billion for the Landbank
  • R20.5 billion to meet cost implications of 2021 public service wage agreement
  • R28.9 billion for the local government’s fair share to provide and elevate services
  • R5.2 billion in tax relief to help support the economic recovery, provide some respite from fuel tax hikes and increase incentives for youth employment.

Godongwana concluded his first budget speech with the words: “You will not realize how much distance you have walked until you look around you and realize how far you have come. We have been on this journey for a very long time. And we still have a long way to go before we reach our goal.”

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