Covid-19 and the many problems it has brought dominated Finance Minister Tito Mboweni’s Budget Speech on Wednesday.
The good news is National Treasury and not taxpayers will bankroll the government’s vaccine programme.
In another lifeline for those struggling during the pandemic, R6.3 billion has been allocated to EXTEND the special R350 social relief of distress grant until the end of April 2021.
Mboweni also announced increases for Sassa grants:
- A R30 increase for the old age, disability and care dependency grants to R1890.
- A R30 increase in the war veterans grant to R1910.
- A R10 increase in the child support grant to R460.
- A R10 increase for the foster care grant to R1050.
R678.3 million is earmarked for provincial departments of social development and basic education to continue rolling out free sanitary products for learners from low-income households.
There’s no changes to personal income tax, but once again, sin taxes have been pushed up.
You will now pay eight percent more for dop and entjies with a packet of 20 cigarettes costing an extra R1.39c, while 25g of piped tobacco will cost an extra 47c.
A 340ml blikkie bier will cost an extra 14c, a 750ml bottle of wine an extra 26c, and a bottle of 750ml spirits, including whisky, gin or vodka increased by R5.50.
Mboweni revealed that more than R10bn will go towards the buying of vaccines over the next two years.
In bad news for motorists and road users, Mboweni announced fuel levies would increase by 27c in total.
This comprises a 15c per litre rise in the general fuel levy, while the Road Accident Fund levy is set to increase by 11c and the Carbon Fuel levy by 1c.
It comes as fuel prices are expected to increase next week, with petrol looking set to rise by more than 60c a litre and diesel by over 50c.
Meanwhile, the finance minister hinted at a review of policy and funding options for higher education as the pressure on the fiscus was being felt.
His ministry was working with the Department of Higher Education, Science and Technology (DHEST) on the funding options that would be spelled out later in the year when he tables the budget adjustment in November.
“Government remains committed to ensuring that deserving students are supported through higher education,” Mboweni said.
But already the National Student Financial Aid Scheme (NSFAS) is set to be one of the casualties as the department faces a R24.6bn budget cut.