Budget policy statement: all the issues and promises at a glance

2010-10-28 00:00

FINANCE Minister Pravin Gordhan’s much-anticipated Medium-Term Budget Policy Statement adressed several key issues and promised more money for specific occupations.

• Treasury is investigating tender fraud amounting to R25 billion; Plans an overhaul of supply chain management processes to combat tender fraud.

• Gordhan more upbeat on 2010 economic growth — anticipates 3% growth in 2010 and 3,5% in 2011;

• Tax revenue overrun lowers budget deficit;

• No plans to weaken rand — exchange control reforms described as mild;

• Unions warned on wages — proposed budget framework makes provision for average annual growth in compensation of 6,3%;

• Downplays National Health Insurance (NHI) tax burden but government health spending to grow to over R127 billion by 2013 from R109,7 billion in 2011/12 as NHI takes shape;

• R1bn for youth employment;

• Rand reacts to mild exchange control reforms — weakened further to above R7 to U.S. Dollar after Gordhan’s speech

• Speculation that tax hikes could be on the cards in the 2011 budget.

SPENDING HIGHLIGHTS:

• More money for police, military and courts;

• Money allocated for Occupation Specific Dispensation (OSD) salary adjustments include:

— the justice cluster: R320 million;

— public health sector: R350 million;

— other salary costs to cover higher remuneration costs in national departments: R2,3 billion;

— natural disasters R363,4 million;

— HIV/Aids prevention (R100 million) and drought relief.

Join the conversation!

24.com 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.

24.com 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
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

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

Hello 

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 24.com network.

Settings

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.