Delivering its inaugural budget speech Finance Minister Enoch Godongwana said on Wednesday that interventions to chart a course towards growth and fiscal sustainability will reduce the budget deficit and stabilize debt, as well as provide income and employment support, address service shortfalls and tax relief the structural changes our economy needs.
Godongwana had good news for taxpayers, with a number of interventions aimed at easing the burden on their wallets.
This is how the minister puts money back in the consumer’s wallet:
- R3.33 trillion over the next three years to support vulnerable and low-income households
- an additional 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 increase in benefits for the elderly, war veterans, disability and care dependency from R90 in April and another R10 in October
- a one-off increase of R20 in subsidies for foster care and child benefits in April
- personal income tax brackets and discounts will be adjusted by 4.5 percent, which means that the annual tax-free threshold for a person under the age of 65 will be raised from R87 300 to R91 250
- medical tax credits are increased from R332 to R347 per month for the first two members, and from R224 to R234 per month for additional members
- no increases in general fuel tax on petrol and diesel for a tax credit of R3.5 billion
- no increase in the levy of the Road Accident Fund.