2009 Budget in a nutshell

Tax highlights:

• Personal income tax relief for individuals of R13,6bn;
• Savings incentives increased, with adjustments to interest, foreign dividend and capital gains tax calculations;
• Taxes on petrol and diesel increased by 40,5 and 41,5c per litre respectively;
• A packet of cigarettes will cost 88c more;
• Tax on alcohol increased;
• Incentives for energy-efficient technologies;
• Motor vehicle excise reform to tax carbon emissions and a new tax on energy-intensive light bulbs;
• Medical aid deductions increased, proposal to convert to a tax credit system;
• Travel allowance system to be scrapped;
• Dividend tax to be implemented in the second half of 2010;
• Mining Royalty Act postponed;

Economy/public services:

• GDP growth is projected at 1,2% in 2009, rising to 4% by 2011;
• Inflation is expected to fall to 5,8% in 2009;
• Total government spending up to R834bn in 2009
• Public sector borrowing 7,5% of GDP
• Budget deficit 3,8%
• Government spending on infrastructure totals R787bn over the next three years, R390bn of which is capital spending on state-owned enterprises;
• SAA to get R1,6bn injection;
• Eskom's R60bn loan explained;
• Road accident fund in precarious financial position;
• R5,4bn allocated to interventions aimed at improving criminal justice services, the creation of an integrated fingerprint and DNA database and other crime-fighting initiatives. 
• Stricter oversight required for executive remuneration in government agencies.

Greater control for foreign travel, advertising and public relations activities and consultancy services.