---
title: "South Africa’s 2021 Budget in a Box"
description: "Finance Minister Tito Mboweni delivered his 2021 Budget Speech on Wednesday. Here’s what you need to know:"
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "BUSINESS MAVERICK"
canonical_url: "https://www.dailymaverick.co.za/article/2021-02-24-south-africas-2021-budget-in-a-box/"
published: "2021-02-24T23:03:47"
lang: "en-ZA"
word_count: 303
---

# South Africa’s 2021 Budget in a Box

> Finance Minister Tito Mboweni delivered his 2021 Budget Speech on Wednesday. Here’s what you need to know:

Published 25 February 2021, 01:03 SAST

## Content

1. South Africa’s budget deficit has been revised to 14% of GDP in 2020/21.
2. Gross debt has increased from 65.6% to 80.3% of GDP for 2020/21.
3. Debt is projected to stabilise at 88.9% of GDP in 2025/26.
4. Government has pencilled in a primary surplus (when total revenue exceeds non-interest expenditure) for 2024/25.
5. This depends on many things, including a 1.2% annual wage increase over three years for public servants.
6. This will result in cuts to the wage bill of R303-billion over the next four years including 2020/21.
7. Social grants increased by less than inflation.
8. The Land Bank was the only SOE to be bailed out – to the tune of R9-billion over three years.
9. The government has allocated R9-billion to the Covid-19 vaccination campaign over the medium term. The balance will be funded by the private sector.
10. Debt-service costs will average 20.9% of gross tax revenue over the medium term, that is 21c of every rand is spent servicing interest.
11. Total government spending will amount to R2-trillion every year for the next three years.
12. Big-ticket items include R402.9-billion on learning and culture, R335.2-billion on social development and R248.8-billion on health in 2021/22.
13. Funding for new and urgent priorities (vaccines) is provided through reprioritisation and reallocation of existing baselines.
14. No personal tax hikes! The intention to raise R40-billion over the next four years did not materialise, thanks to better-than-expected revenue collection.
15. Also, personal income tax brackets will shift upwards by more than the inflation rate of 4%.
16. Corporate tax will decline from 28% to 27%.
17. Excise duties on alcohol and tobacco rise by a hefty 8% for 2021/22.
18. The fuel levy will increase by 15c/litre while the RAF levy will increase by 11c/litre.
19. The UIF contribution ceiling will be set at R17,711.58 per month from 1 March.
20. Mass public employment programmes are allocated R11-billion. **BM**