---
title: "Budget in a Box"
description: "What you need to know about #Budget2020"
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "#BUDGET2020"
author: "Sasha Planting"
author_url: "https://www.dailymaverick.co.za/author/sasha-planting-2/"
canonical_url: "https://www.dailymaverick.co.za/article/2020-02-26-budget-in-a-box/"
published: "2020-02-26T14:04:30"
updated: "2020-02-26T14:21:44"
lang: "en-ZA"
word_count: 244
---

# Budget in a Box

> What you need to know about #Budget2020

By Sasha Planting · Published 26 February 2020, 16:04 SAST · Updated 26 February 2020, 16:21 SAST

## Content

**TAX**

1. Real tax relief for individuals. Tax brackets will be adjusted, and personal income tax rebates increased.
2. Booze and smokes will be taxed a further 4.4%-7.5%, with the exception of traditional African beer, which will be taxed 4.4% less.
3. The fuel levy will rise by 25c.
4. The plastic bag levy rises from 12c to 25c a bag.
5. Corporate tax does not change.
6. No change to VAT.

**GOVERNMENT REVENUE and GROWTH**

1. 78% of government income comes from taxes, 20% from borrowing, 2% other.
2. Tax revenue will be R63.3-billion less than estimated in October 2019.
3. The economy grew by 0.3% in 2019, and is projected to grow by 0.9% in 2020.

**GDP and DEBT**

1. Debt is not going to stabilise over the medium term.
2. Debt service costs absorb 15.2% of government revenue, up from 10%.
3. The Budget deficit (the difference between spending and revenue that has to be made up through borrowing) has risen to 6.8% of GDP.
4. Thus, borrowing will rise to R432.7-billion in 2019/20.
5. Thus, gross debt will rise from R3.18-trillion in 2019/20 to R4.4-trillion or 71.6% of GDP by 2022/23.

**SPENDING and SAVING**

1. The government will spend R1.54-trillion in 2020/21.
2. This excludes debt service costs of R229-billion, almost equivalent to the budget for education this year.
3. R60-billion has been set aside for Eskom and SAA over the next three years.
4. Expenditure will be cut by R261-billion over three years.
5. Of this, R160-billion will be cut from the public sector wage bill. **DM**