Business Maverick

BUDGET 2023

Budget in a box — see where all the money is going

Budget in a box — see where all the money is going
(Photo: Waldo Swiegers / Bloomberg via Getty Images)

Here in brief are some key points on the Budget.

The Eskom debt relief

Eskom will get R254 billion in debt relief which will result in government debt stabilising at 73.6% of GDP in 2025/26, later and at a higher level than in the 2022 Medium Term Budget Policy Statements

The deficit

The consolidated budget deficit will decline from 4.6% of GDP in 2021/22 to 4.2% of GDP in 2022/23, reaching 3.2% of GDP in 2025/26

Debt service

Debt-service costs as a per cent of main budget revenue will increase from 18% in 2022/23 to 19.8% in 2025/26 and is expected to average R366.8-billion a year over the medium term.

Spending

The 2023 Budget allocates additional funding totalling R227-billion over the next three years. The additional funds are mainly to extend the COVID-19 social relief of distress grant until 31 March 2024, improve investment in local and provincial government infrastructure, and support safety and security, education and health services.

Clean energy transition

Tax relief totalling R13 billion in 2023/24 to support the clean energy transition has been allocated, increase the electricity supply and limit the impact of consistently high fuel prices. R4 billion in relief is provided for individuals that install solar panels, and R5 billion to companies through an expansion of the renewable energy tax incentive.

Fuel levy

As in the 2022 Budget, there are no changes to the general fuel levy or the Road Accident Fund levy. In 2022, the state earned R90.4-billion from the fuel levy.

 

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