Yesterday, Minister of Finance, Malusi Gigaba delivered the annual Budget Speech.
...But what exactly is the Budget Speech about?
The annual Budget Speech is when the Minister of Finance allocates the funds to various governmental departments. It also indicates how much money the government is estimated to received through tax. This tax will be used for the various governmental departments.
So how does this affect me?
Well, there are a few things that may affect you.
VAT is going up
Value Added Tax or VAT is a tax we all pay on EVERYTHING we purchase. See the 14% at the bottom of your slip, that's going up to 15%. But it's for a good reason. Don't worry though VAT on basic food items WILL NOT be increasing.
Money for Education
Over R30 billion will be allocated to building new schools and repairing inappropriate or unsafe schools. This will provide the necessary schools with the necessary infrastructure to function to it's best capabilities, to provide the youth of Mzansi the best possible conditions for learning.
Another R57 billion will be set aside to provide FREE TERTIARY education for students with a family income of less than R350 000. So this means that there may be an opportunity for if you could not afford this previously.
Social Grants to be upped.
Social grants will be increased to match the increase in inflation (the yearly increase in the cost of basic items).
There are a ton of other things that came with the budget speech, but these are a few of the basic things that will affect you!