Pin it
April 23, 2014 | Last Updated 8:23 PM
Loading
Image Loading


Subscribe to newsletters

 
 
MOBILE RSS twitter facebook
SA Business
Feb 23 2012 7:51AM
 
The R1.1 trillion budget
Finance Minister Pravin Gordan, Picture: Gallo Immages
print
divider
mail
divider
Bookmarkl and ShareShare
divider
share
 
Rate This Story close
|

Bernard Sathekge

In a R1.1 trillion budget, Finance Minister Pravin Gordan sought to maintain a balance of maintaining the state’s contribution to growth and development while ensuring fiscal sustainability.

In line with the countercyclical fiscal stance, the Minister said the budget deficit remains substantial at 4.6% of GDP in 2012/13, but narrows to 3% in the year as economic activity accelerates.

Over the medium term, slower growth in public spending, combined with rising revenue, will strengthen the sustainability of the fiscus and the stabilisation of public debt will arrest the growth of debt-service costs.

Gordhan said the government will begin to shift the composition of spending from consumption towards capital investment while moderating growth in the public-sector wage bill, and stabilising the growth in interest payments will allow more funds to be spent on infrastructure.

Key features of the fiscal outlook will include real growth in non-interest expenditure averaging 2.6%. The Minister said additional allocations of R55.9bn over the next three years, including R9.5bn for an economic support package.

“There must be a shift from consumption to capital spending so that, from 2014/15, new borrowing will support investment.

“South Africa’s finances are in a good health. A budget deficit of 4.6% of GDP is projected in 2012/13. We plan to reduce the deficit to 3% in 2014/15 and public debt will stabilise at about 38% of the GDP,” he said. bernards@ thenewage.co.za
 

|
print
divider
mail
divider
Bookmarkl and ShareShare
divider
share
 
 
Comment Now


 

 




Related Stories
SA’s first R1 trillion budget
arrowFinance Minister Pravin Gordhan’s 2012 budget on Wednesday got mixed reactions across sectors, with some lauding it while others said it was lack
‘Let’s all work together to realise a job-rich economy’ - Busa
arrowFinance Minister Pravin Gordhan’s 2012-13 budget speech was widely welcomed, particularly the emphasis on building partnerships and pumping up fi
R1 trillion boost for bold plan
arrowFinance Minister Pravin Gordhan aims to open a new chapter of partnerships in South Africa’s economic development path when he presented his bold
Budget follows plan
arrowFinance Minister Pravin Gordhan has followed up on President Jacob Zuma’s ambitious infrastructure investment plan by announcing 43 mega projects
The R1.1 trillion budget
arrowIn a R1.1 trillion budget, Finance Minister Pravin Gordan sought to maintain a balance of maintaining the state’s contribution to growth and deve
Tax up for NHI scheme
Minister of Finance Pravin Gordhan gave clearer indications of how government intends to fund the National Health Insurance (NHI) scheme and confirmed speculation that taxes will have to be raised.
SOE’s given a role in infrastructure development
arrowState owned enterprises (SOEs) are budgeted to play a pivotal role in government infrastructure development expenditure and they will have to do
Pre-budget night vigil
arrowOn the eve of Finance Minister Pravin Gordhan’s budget speech, more than 100 people – many of them having travelled from the far-flung rural area
What did the public think of Pravin Gordhan’s budget speech?
arrowSouth Africans are excited by health and education.
Mixed reaction to budget
arrowSpeech described as a balancing act by major SA role players.
Budget guide for education
arrowSpending on education will grow from R207bn in 2012/13 to R236bn in 2014/15, said Finance Minister Pravin Ghordan in his budget speech yesterday.
Accelerating service delivery
arrowWater and sewage systems for informal settlements.
South Africa to introduce carbon tax
arrowSouth Africa is looking to introduce a carbon tax next year to reduce harmful greenhouse gas emissions, although nearly two-thirds of emissions w
Jobs remain a key government priority
arrowA year after President Jacob Zuma declared 2011 the year of job creation Finance Minister Pravin Gordhan said the government was still committed
Toll fee relief for motorists
As a way of cooling off the public spat over the toll fees and to ease the toll burden in Gauteng, Finance Minister Pravin Gordhan said on Wednesday that a special allocation of R5.8bn would be made.
Agri and land affairs
arrowThe Land Bank has been allocated R1bn to finalise its recapitalisation plan in the 2012/13 financial year.
State of the Province Address
arrowOn Tuesday, the Premier of KwaZulu-Natal, Dr Zweli Mkhize, delivered his State of the Province Address, in which he outlined a detailed programme
Healthcare spend
arrowExperts in the health industry applauded finance minister Pravin Gordhan on the budget allocations he announced yesterday.

 






 
 
Close

Name:*   

Email:*   

Comment: *


 
Close Name:

Email:  

Subject:

Description:
               

 
 
http://www.dmma.co.za/ sudoku