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Budget 2015 - The Speech

25 February 2015 1:00 PM

Finance Minster Nhlanhla Nene will deliver his budget speech at 2pm. South Africa needs more revenue; how will it be raised?

Here are some of the highlights from Finance Minister Nhlanhla Nene's 2015 Budget Speech.

Scroll down to also watch the video and use the provided links to jump to the parts that concern you.

As expected, taxes on alcohol and cigarettes will increase.

  • the tax on a quart of beer goes up by 15.5 cents

  • tax on a bottle of wine goes up by 15 cents

  • tax on a bottle of sparkling wine goes up by 48 cents

  • tax on a bottle of whisky goes up by R3.77

  • tax on a pack of 20 cigarettes goes up by 82 cents

Many commentators expected an increase in Value Added Tax (VAT). Despite this the Minister left the VAT rate unchanged at 14 percent.

The fuel levy will increase by 30.5c/litre while the Road Accident Fund levy will go up by 50c/litre.

Social grants have been increased only slightly:

  • Old age pensions and disability grants goes up from R1350 a month to R1410.

  • The foster care grant goes up from R830 to R860 a month.

  • The child support grant goes up to R330.

Personal income tax will go up by one percentage point for all salaries above R181 900 a year.

Government expects a budget deficit of 3.9 per cent of GDP for 2015/16, falling to 2.5 percent in 2017/18. Total non-interest expenditure will rise from R1.123-trillion this year to R1.4-trillion in 2017/18.

Government's projected tax revenue will amount to R979-billion in 2014/15, or about R14.7-billion less than the budget estimate a year ago.

In 1994 the total tax revenue was R114-billion.

[VIDEO]: Use the links provided below to jump to some of the highlights of Finance Minister Nhlanhla Nene's 2015 Budget Speech:

The Minister

Nhlanhla Nene was appointed Finance Minister in May 2014, taking over from Pravin Gordhan following the National Elections. He had previously served as Deputy Finance Minister.

He has been a member of Parliament since 1999 and served as Co-Chairperson of the Joint Budget Committee from October 2002 until August 2005. He then became the Chairperson of the Portfolio Committee on Finance from August 2005 until 4 November 2008.

He became Deputy Minister of Finance on 5 November 2008.

He was a member of the Local Organising Committee (LOC) for the FIFA 2010 Soccer World Cup and serves as Chairperson of the Public Investment Corporation.

The text of the speech

Budget Speech 2015

25 February 2015 1:00 PM