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Highlights of 2018 Budget

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Finance Minister Malusi Gigaba delivered his maiden budget speech in Parliament on Wednesday, after less than a year in the job, tabling some bold proposals to make up for a R48.2 billion shortfall in revenue collection and to fund, among others, free higher education for a bigger cohort of poor students at universities, technical and vocational education training colleges.

These were some of the highlights in the 2018 budget speech:

On April 1, value-added tax (VAT) is set to increase by one percentage point from 14 to 15 percent.

SA will spend R57 billion on providing free higher education for an estimated 1.1 million students from low household incomes over the next three years.

On April 1, pensioners will see their grants increase from R1,600 to R1,690, and by another R10 by October 1.

The child support grant will increase by R20 from R380 to R400, and by another R10 come October 1.

 

GDP growth for 2018 forecast at 1.5 percent, rising to 2.1 percent in 2020.

Excise duties on tobacco products will increase by 8.5 percent and taxes on alcohol will go up by between 6 and 10 percent.

 

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