The global environment remains highly uncertain. While there are signs of a revival in the US economy, much of Europe is in recession, and significant financial risks cloud the global economic outlook.
South Africa’s finances are in good health. A budget deficit of 4.6 per cent of GDP is projected in 2012/13. We plan to reduce the deficit to 3 per cent of GDP in 2014/15, and public debt will stabilise at about 38 per cent of GDP.
An expansion in infrastructure investment is one of the central priorities of the 2012 Budget.
Special emphasis is given to improving competitiveness in industry, investment in technology, encouragement of enterprise development and support for agriculture.
Total spending will reach R1.1 trillion next year, representing some 32 per cent of GDP.
Education, health and social assistance will remain the largest categories of expenditure, sustaining and expanding the social wage over the MTEF period ahead. Investment in people is at the centre of our growth and development strategy.
The 2012 budget continues to support job creation, with a particular focus on unemployed youth.
The 2012 budget provides for personal income tax relief of R9.5 billion, with further measures to increase tax compliance.
Measures are proposed to invigorate household savings.
We will strengthen financial management in the public sector, pursue value for money with the greatest possible vigour and ensure that taxpayers’ money is well used.
Fraud and corruption will be combated through changes to procurement policies and practices and tough enforcement of the law.
the 2012 Budget by Pravin Gordhan