Budget 2016: Gordhan targets govt spending, financial relief for students
Tertiary education has received a much-needed boost as Finance Minister, Pravin Gordhan has announced further cash injections in his Budget Speech.
He says R16.3 billion rand has been allocated over the next three years.
"R5.7-billion of this addresses the shortfall caused by keeping fees for 2016's academic year at 2015 levels - 0% - and the carry through cost of periond. R2.5-billion goes to NSFAS scheme to clear outstanding student debt along with a further R8-billion over the medium term to enable current students to complete their studies," he said.
This as Finance Minister, Pravin Gordhan, says government has introduced new measures to increase revenue through tax.
Read the full Budget Speech here.
"Our tax proposals includes the following - an increase in the monthly medical tax credit allowance, an increase of 30-cents a litre in the general fuel levy in view of the low price of oil, introduction of a tyre levy to finance recycling programmes, increases in the incandescent globe tax, the plastic bag levy and the motor vehicle emissions tax. For those of you who like fizzy drinks - introduction of a tax on sugar and sweetened beverages," he said.
In line with the National Development Plan, Pravin Gordhan says government will indeed be tightening its belt.
"Against the background of slow growth, rising debt and higher interest rates, the pace of fiscal consolidation will be accelerated. The budget deficit will be reduced compared to the MTBPS (Medium Term Budget Policy Statements) figures that this house learnt in October. The budget deficit will be reduced to 3.2% in 2016/2017, 2.8% in 2017/2018 and 2.4% in 2018/2019," he said.
The Finance Minister has been presenting his Budget Speech in Parliament and has been announcing measures to rein in government spending.
(File photo: Gallo Images)