• R9.5billionfortheeconomiccompetitivenessandsupportpackage,includingR2.3billionfordedicatedspecialeconomiczones

• R6.2billionforjobcreation• R3billionforequalisationofsubsidiestono-feeschoolsandexpansionofaccesstogradeR

• R1billionfornationalhealthinsurancepilotprojects• R1.4billionforearlychildhooddevelopment• R4billionforpassengerrailcoaches• R1billionforrailsignallinganddepotinfrastructure• R4.7billionsolarwatergeysers• R1.8billionformunicipalwaterinfrastructure• R3.9billionforupgradinginformalsettlements

• Economicgrowthforecasttoslowfrom3.1%in2011to2.7%in2012,increasingto4.2%by2014

• Consumerpriceinflationtorisefromaverageof5%in2011to6.2%in2012,decliningto5.1%in2014

• Currentaccountdeficittorisefrom3.3%ofGDPin2011toaverage4.4%overnextthreeyears

• Employmentisgrowing–365000jobswerecreatedintheyeartoDecember2011andunemploymentfellto23.9%

• AdditionalR55.9billioningovernmentexpenditureplansovernextthreeyears• Realgrowthinnon-interestexpenditureof2.6%overMTEF• Budgetdeficitof4.6%projectedin2012/13,4%in2013/14and3%in2014/15• NationalgovernmentnetloandebtprojectedtoreachR1.5trillionin2014/15• DebtstockandinterestcostsaspercentageofGDPtostabiliseovermediumterm

Economic rEcovEry and EmploymEnt

BudgEt framEwork

• PersonalincometaxreliefofR9.5billion• Taxincentivetoencouragesavings• Reformstomedicalschemecontributionsandretirementsavingsdeductions• Taxreliefformicroandsmallbusinesses• Dividendwithholdingtaxintroducedat15%• Capitalgainstaxincreased• Apacketof20cigaretteswillcost58cmore• Alitreofwinewillcost18cmore,a340mlcanofbeerwillcost9cmoreanda750mlbottleofspiritswillcostR6more

• Generalfuellevyincreasesby20calitre,andtheRoadAccidentFundlevyincreasesby8calitre;

• Electricitylevyincreasedby1c/kWh

tax proposals

BudgEt at a glancEmacroEconomic outlook – summary, 2011 – 2014

2011 2012 2013 2014Real growth Estimate ForecastHouseholdconsumption 4.9% 3.6% 3.8% 4.2%Capitalformation 4.3% 4.1% 4.5% 6.0%Exports 6.0% 2.9% 5.8% 6.6%Imports 9.4% 7.2% 7.1% 8.3%Gross domestic product 3.1 % 2.7 % 3.6 % 4.2 % Consumerpriceinflation(CPI) 5.0% 6.2% 5.3% 5.1%Balanceofpaymentscurrentaccount(percentageofGDP) -3.3% -4.3% -4.5% -4.4%

consolidatEd govErnmEnt fiscal framEwork, 2011/12 – 2014/15

2011/12 2012/13 2013/14 2014/15R million Revised estimate Medium-term estimatesRevenue 830.2 904.8 1 005.9 1 118.2 PercentageofGDP 27.7% 27.4% 27.8% 28.0%Expenditure 972.5 1 058.3 1 149.1 1 239.7 PercentageofGDP 32.5% 32.1% 31.7% 31.0%Budget balance -142.3 -153.5 -143.3 -121.5 PercentageofGDP -4.8% -4.6% -4.0% -3.0%Grossdomesticproduct 2995.5 3301.4 3622.2 3997.0

consolidatEd govErnmEnt ExpEnditurE By function, 2011/12 – 2014/15

2011/12 2012/13 2013/14 2014/15 Average annual growth

2011/12 – 2014/15

R million Revised estimate

Medium-term estimates

Generalpublicservices 52068 51991 55413 58631 4.0%Defence 38367 41617 44348 46992 7.0%Publicorderandsafety 90544 97991 104530 110575 6.9%Economicinfrastructure 81494 83595 90224 98298 6.4%Economicservicesandenvironmentalprotection

53077 61393 66439 70575 10.0%

Localgovernment,housingandcommunityamenities

107482 120051 129576 139322 9.0%

Health 113796 121906 130536 139352 7.0%Recreationandculture 9043 8571 9543 9940 3.2%Education 195483 207281 223100 236067 6.5%Socialprotection 144693 157930 171394 184792 8.5%Scienceandtechnology 9856 10797 11333 12116 7.1%Allocated expenditure 895 903 963 123 1 036 435 1 106 660 7.3% Debt-servicecost 76645 89388 100806 109039 12.5%Contingencyreserve – 5780 11854 24000Unallocated – 30 30 –Consolidated expenditure 972 547 1 058 321 1 149 125 1 239 699 8.4%

National TreasuryDepartment:

REPUBLIC OF SOUTH AFRICA

national treasury

additions to spEnding plans ovEr thE nExt thrEE yEars

350 000

300 000

250 000

200 000

150 000

100 000

50 000

0Personal

incometaxExciseduties

Corporateincometax

Customsduties

VAT Fuellevies Other

tax rEvEnuE 2012/13

34.6% 20.3% 25.4%3.5% 4.4% 5.2% 6.7%

R million

Final Budget Highlights 2012 A4card_v1.indd 1 18/02/2012 13:56

National TreasuryDepartment:

REPUBLIC OF SOUTH AFRICA

national treasury

note:ConsolidatedgovernmentexpenditureinRbillion,percentagesreflectgrowthrelativeto2011/12estimatedoutcome.

Final Budget Highlights 2012 A4card_v1.indd 2 18/02/2012 13:56