Mboweni's budget speech: Government's R10 bn vaccine drive, hikes on booze and cigarettes

He delivered his 2021 Budget Speech in Parliament this afternoon.

 

“The main budget revenue is projected to be R1.35 trillion or 25.3% as a share of gross domestic product in 2021,” Mboweni said.

 

He announced that tax increases would be capped at a minimum.

 

Over R10 billion has been allocated for the purchase of Covid-19 vaccines over the next two years.

 

“We are increasing the contingency reserve from 5 billion to 12 billion, to make provision for any further purchase of vaccine and to cater for nay other emergencies. With this framework we are on track to achieve our goal of closing the main budget deficit.”

 

Mboweni also announced an 8 percent increase on alcohol and tobacco products, effective immediately.

 

-        340ml can of beer or cider will cost an extra 14c

 

-        750ml bottle of wine will cost an extra 26c

 

-        750ml bottle of sparkling wine an extra 86c

 

-        bottle of 750 ml spirits, including whisky, gin or vodka, will increase by R5.50

 

There has also been an increase in regular social grants.

-      R30 increase: Old age, disability, and care dependency grants to R1890

        R30 increase. War veterans grant to R1910

-      R10 increase. Child support grant to R460

-      R10 increase. Foster care grant to R1050

[Read] Government’s fiscal strategy over the next three years will be to narrow the deficit and stabilise the debt-to-GDP ratio, the National Treasury said on Wednesday https://t.co/1U0dGm5qQC @TreasuryRSA #Budget2021 pic.twitter.com/Zol6Y6VO4Z

— @SAgovnews (@SAgovnews) February 24, 2021