Cape Town – Finance Minister Pravin Gordhan has tabled a mini budget loaded with cost cutting measures, starting in parliament.
He managed to keep inside his fiscal constraints, but keep spending on social grants and growth enhancing projects in tact.
The salient points:
- Growth downgraded to 2.1% of GDP this year.
- Continue on trusted road of spending to stimulate growth while maintaining fiscal stability.
- Spending will grow by 2.2% above inflation over the next three years and will stay within the spending ceiling set in February budget.
- The budget deficit (short fall in tax collections that government will have to borrow) will stay at 4.2%.
- Gross revenue collection for the current fiscal year revised down slightly by R3bn to R895bn.
- State debt still under control and is projected to stabilise at about R44bn in 2017/18.
- Just under 10% of total budget budget, or R110bn will be spent next year on debt service costs.
- R2.3bn more will go this year for salary adjustments in die civil service.
- Government will try and cut down on wasteful expenditure regarding cars, catering (no alcohol at state functions), travel, accommodation and consultants’ fees.
- The growing wage bill in the public sector will get attention.
- Budget firmly behind the principles of the National Development Plan
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