Dugong Posted February 20, 2008 Report Share Posted February 20, 2008 (edited) The budget speach was just delivered by Trevor M to parliment. Old Mutual has a fairly good website which I attach for your review http://www.oldmutual.co.za/markets/south-a...CFREVEAodZX58YgQuick summary2008 Budget highlightsThe economy and fiscal stance- GDP growth of 5 per cent in 2007, with growth averaging about 4.3 per cent a year over the forecast period. - CPIX inflation rising to 7.1 per cent in 2008 before declining to 4.9 per cent in 2009. - Gross fixed capital formation projected to rise from 21 per cent of GDP in 2007 to 24 per cent in 2010. - Estimated consolidated national budget surpluses of 1 per cent in 2007/08 and 0.8 per cent in 2008/09, with projected surpluses over the three-year period. - Real growth in consolidated government non-interest expenditure of 6.1 per cent a year over the MTEF. - Government contribution to national savings projected to rise from 0.8 per cent of GDP in 2006/07 to 1.5 per cent in 2010/11. - R60 billion to support Eskom’s capital financing requirements over the next five years.Tax proposals - Total tax relief for individuals of R7.7 billion. - Reduction in the corporate income tax rate from 29 per cent to 28 per cent. - A simplified tax regime for small businesses. - R5 billion in tax subsidies over the next three years for labour-intensive industries and industrial policy. - An electricity levy of 2 cents per kilowatt hour. - Fuel (petrol and diesel) taxes to increase, from 2 April 2008, by 11 cents per litre. - A packet of 20 cigarettes will cost 66 cents more. - A 750 ml bottle of wine will cost 12 cents more. - A 340 ml can of beer will cost 5 cents more. - A 750 ml bottle of liquor (spirits) will cost R2.17 more.Spending on public servicesAdditions to spending over the next three years: - R33.2 billion for provinces mainly for school education, health care, welfare services and roads. - R6.5 billion to municipalities for the extension of free basic services. - R12.5 billion for social grants, including extension of the child support grant to children up to their 15th birthday in 2009 and lowering of the age of eligibility for men to receive the old age pension to 60. - R9 billion in conditional grants for school building, HIV and Aids, hospital revitalisation and school nutrition. - R8.2 billion for public transport, roads and railway infrastructure. - R6 billion for housing, water and general built environment infrastructure. - R2 billion for 2010 FIFA World Cup Stadiums and related infrastructure. - R2.5 billion for industrial development and small, medium and micro enterprises. - R2.6 billion for agriculture and land reform. - R2.7 billion for information technology network infrastructure, police forensic laboratories and additional police personnel, and R2 billion for correctional facilities. - R1.4 billion for higher education, research and knowledge development. - R1 billion for programmes under the expanded public works umbrella. Edited February 20, 2008 by Lion King Quote Link to comment Share on other sites More sharing options...
Dugong Posted February 20, 2008 Author Report Share Posted February 20, 2008 Seems that this extract from the speech will have an impact on us (well more corporate than us) but it is not clear yet what that impact will beExchange control reformMadam Speaker, in keeping with our focus on structural improvements required forlong-run growth, there will be further steps in exchange control reform this year. Theimportance of a sound framework for financial stability has been underscored by thepresent turbulence in financial markets, and the direction of our reform is focused onreplacing unnecessary administrative controls with improved surveillance and prudentiallimits on foreign exposure risks, as commonly applied internationally.Exchange controls on institutional investors will be removed and replaced with a systemof prudential regulation, involving quarterly reporting and monitoring of foreignexposures by the Reserve Bank. The foreign exposure limits for institutional investorswill be raised and banks will be permitted to undertake foreign investment within anappropriate macro-prudential limit. Participation in the rand futures market on the JSESecurities Exchange will be opened up. Remaining administrative procedures will bestreamlined and simplified.This entails a substantial shift of functions and responsibilities of the Reserve Bank’sExchange Control division, which will be renamed the Financial SurveillanceDepartment, in line with its new mandate Quote Link to comment Share on other sites More sharing options...
CraigAndMel Posted February 20, 2008 Report Share Posted February 20, 2008 Rand PLUMETS after his speech!http://www.fin24.com/articles/default/disp...18-1791_2274372 Quote Link to comment Share on other sites More sharing options...
Leonie Posted February 20, 2008 Report Share Posted February 20, 2008 (edited) Looks like the exchange controls are being relaxed. If it is true what is being reported on the www.moneyweb.co.za website, the travel allowance is up to R500 000 per person from R160 000 as a discretionary travel allowance.Just hope the use their discretion to our favour when the time comes. Edited February 20, 2008 by Leonie Quote Link to comment Share on other sites More sharing options...
Dugong Posted February 20, 2008 Author Report Share Posted February 20, 2008 Yea, didn't see that in the speech, but hope its true!!! Quote Link to comment Share on other sites More sharing options...
MMF Posted February 21, 2008 Report Share Posted February 21, 2008 Is the travel allowance real? That would be great!! Quote Link to comment Share on other sites More sharing options...
Dreams Posted February 22, 2008 Report Share Posted February 22, 2008 May be Eishkom's load shedding was part of a plan to get lots of money from the government ...I know they are behind with maintenance and cannot provide enough power, but strangely there are less power failures after the budget speech Quote Link to comment Share on other sites More sharing options...
starfish Posted February 25, 2008 Report Share Posted February 25, 2008 Is the travel allowance real? That would be great!!It certainly seems to be true - have a look at the latest circular on the Reserve Bank's site, which is about the budget (attached below). See page 2 paragraph 5 - "Streamlining Administration".This is excellent news for those in the throes of moving - now all we need is the Rand to recover against the Au$.Regards,ScottCirc_No_4_2008.pdf Quote Link to comment Share on other sites More sharing options...
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