Business Maverick


South Africa’s 2021 Budget in a Box

South Africa’s 2021 Budget in a Box
Finance Minister Tito Mboweni delivers his Budget speech on Wednesday, 24 February 2021. (Photo: Leila Dougan)

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

  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

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted


This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.

Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options