Nene’s budget speech in 9 points

2015-02-25 17:11

» 0.5%

Finance Minister Nhlanhla Nene reduced the country’s 2015 economic growth forecast due to load-shedding by state utility Eskom.

Nene said the security and reliability of energy supply was holding the country back and it was for this reason that he dropped the projected economic growth from 2.5% in October 2014 to 2% by the end of the year.

» R1.03

Nene was more lenient on sin tax than Pravin Gordhan last year. Gordhan increased the sin tax on whisky by R4.80 a bottle, while Nene only increased it by R3.77. So for whisky lovers, this could have been a lot worse.

» 14 cents

Nene had less mercy for smokers than Gordhan. The former finance minister last year was a lot kinder to smokers and increased sin tax by only 68 cents while Nene was a bit harsh, increasing it by 82 cents.

» R2.3 trillion

South Africa is expected to accumulate debt of R2.3 trillion by the 2017/18 financial year. According to Nene, this is an increase of R550 million over the next three years. What does this mean? Taxes are just not enough; the country still has to borrow money.

» R21

Speaking of tax, a taxpayer will pay R21 in addition to what they are paying now if they earn about R200 000 per annum. Those in higher income brackets (chartered accountants, engineers, we’re looking at you) will pay a bit more.

If for instance you earn R500 000 or more a year, you will pay R271 a month more than you do now. And if you are really coining it in the region of R1.5 million a year, the tax increase is R1 105 a month.

» R110

Social grants have increased by a cluster amount of R110. The old age, war veterans, disability and care dependency grants will increase by R60 to R1 410. Child support grants will increase to R330 from R310, and foster care grants increase by R30 to R860.

» R2.7 billion

Funding to the National Student Financing Aid Scheme (NSFAS) is expected to increase by R2.7bn come 2017/18. NSFAS is projected to spend R11.9 billion in 2017/18, up from R9.2bn in the current year. So between now and 2017/18, the funds to the scheme will only go up by R2.7bn, and if the current funding is not enough for students chances are it won’t be enough in two years’ time either.

» R1.1 billion

The amount allocated for the upgrade of the notorious Moloto Road, which links Mpumalanga and Pretoria, is R1.1bn. According to media reports, by September 2014, accidents on Moloto Road had already taken the lives of 70 people.

» 4 minutes

Nene took 4 minutes longer than Gordhan to deliver his first speech. Gordhan’s maiden speech was in February 2010.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.