Budget 2020: Read Finance Minister Tito Mboweni's full speech

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The full text of the speech prepared for delivery by Finance Minister Tito Mboweni during his second National Budget speech. Budget2020

Members of the Executive Committees for Finance Today I table:The 2020 Tax ProposalsThe Aloe Ferox survives and thrives when times are tough. It actually prefers less water. It wins even when it seems the odds are against it.

Now, even after a decade of weak economic performance, South Africa still boasts deep and liquid capital markets, strong institutions, the most diversified economy on the continent, and a young population. “Ex Africa semper aliquid novi”Achieving economic growth and higher employment levels requires a plan. “Do you not know that those who run in a race all run, but only one receives the prize? Run in such a way that you may win.”In 2020, global economic growth is expected to strengthen to 3.

Last year, the Government embraced the ideas contained in the document Towards an Economic Strategy for South Africa. This is our plan, and it contains the basic and fundamental pillars of our approach: Hard-working tax payers, who earn on average R265 000 a year, will see their income tax reduced by over R1 500 a year.

To support the property market, the threshold for transfer duties is adjusted. Property costing R1 million or less will no longer be subject to transfer duty. The carbon tax and other measures will help green the economy, and will bring in R1.75 billion over the next few months. This will be complemented by more focussed spending on climate change mitigation. We remain extremely concerned about plastic bags throughout the length and breadth of our country. In this regard, we have increased the plastic bag levy to 25 cents.But fiscal sustainability must be uppermost in our mind.

The total reduction is mainly the result of lowering programme baselines and the wage bill by R261 billion. These are partially offset by additions and reallocations of R111 billion. Of this, more than half, or R60 billion, is for Eskom and South African Airways. The first part is adjustments on programme spending of about R100 billion. Some of these were announced in the MTBPS. For human settlements, adjustments amount to R14.6 billion over the MTEF. There are also adjustments of R2.

Public servants do crucial work for our country, often in trying conditions. The governing party is a firm believer in the critical role of the state in development. For this reason, we need qualified, motivated and effective staff. Madam Speaker, we cannot go on like this. Classroom sizes are growing, hospitals are getting fuller and our communities are becoming increasingly unsafe.

The President’s instruction requires a dynamic and appropriate mix of quantity, quality, capacity and capability in the administration of the state. In the education sector, investment goes to new schools, replacing schools constructed with inappropriate materials, and providing them with water, electricity and sanitation. In 2020/21 the maths, science and technology grant will introduce coding and robotics to learners in grades R to 3 as announced by the President.

Over the next three years, 48.2 per cent of nationally-raised funds are allocated to national government, 43 per cent to provincial government and 8.8 per cent to local government. To date, Jobs Fund projects have created more than 175 000 permanent jobs, and helped 21 000 people into internships and created 59 900 short term jobs. Of these, 65 per cent went to youth.

Determinations to implement the Integrated Resource Plan of 2019 are finalised and await the concurrence of the National Energy Regulator. Together with the Department of Trade, Industry and Competition, we are considering various proposals from ITAC related to scrap steel and poultry.Steps are being taken to address South Africa’s lagging productivity growth and reduce the cost of doing business.

The spectrum licensing plan was released in November, preparing the way for auctioning high demand spectrum. ICASA will be appropriately capacitated for this. A voucher system will be introduced to allow households to acquire digital devices.Over the medium term we will support Agriculture and Tourism. Government has allocated R495.1 million to the Department of Agriculture, Land Reform and Rural Development to improve compliance with biosecurity and support exports.

 

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Finance Minister Tito Mboweni should announce a tax on e-cigarettes in Budget Speech | IOL NewsE-cigarette taxation is necessary because e-cigarette use is harmful to health and increases the strain on the health care system and public purse. Taxation should be used on these kind of issues. But not on GORVENMENT spending. GORVENMENT spemding should be funded by the reserve Bank. Even if they act deaf we will make this msg loud and clear. This narrative is misleading Most people on E-cigarettes have access 2 private healthcare & people on the lower end of the spectrum (loose draws) couldn't be bothered 2 check in2 a public healthcare facility Besides, we lose more people in car accidents than we do 2 cigarettes Agree!!
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