AC1 - The Economy, The National Budget

Who compiles the National Budget?

The Department of Finance

Who presents the National Budget speech?

Enoch Godongwana, Minister of Finance

What does the National Budget project?

The government’s income and expenditure for a financial year

What is the main source of government income?

Taxes

What are the two types of taxes?

Direct Tax and Indirect Tax

What is the VAT rate in South Africa?

15% on all goods purchased

What is the corporate tax rate in South Africa?

28%, reduced to 27% after March 31, 2023

What is the main budget revenue for 2022/2023?

R 1,588.0 billion

What percentage of GDP is the tax revenue?

24.8%

What was the real GDP growth in 2022?

2.1%

What was the CPI inflation rate forecast for 2023?

4.4%

What is the budget balance for 2022/23?

Negitive R 386.6 billion

What is the projected revenue for 2023/24?

R 1,853.2 billion

What is the allocation for local government in 2022/23?

R 150.6 billion

What is the total budget for health in 2022?

R259 billion

What is the percentage share of national departments in 2022?

47.9% to 51.1%

What is the percentage share of local government in 2022?

8.3% to 10.2%

What is the total budget for education in 2022?

R441.5 billion

What is the tax threshold for personal income tax?

R91,250 annually

What is the total consolidated government expenditure for 2022?

R2.16 trillion

What is the allocated budget for teachers' salaries?

R24.6 billion

What is the budget for community development in 2022?

R236.3 billion

What is the aim of social grants in 2022?

To reduce poverty & assist the poor

What is the total budget for peace and security?

R220 billion

What is the percentage increase on alcohol and tobacco tax for 2022/23?

Between 4.5% and 6.5%

What is the allocated budget for healthcare goods and services?

R15.6 billion

What is the total budget for economic development?

R227.1 billion

What are the funds allocated for university transfers?

R48.7 billion

What is the total social grants budget over the next 3 years?

R684.4 billion

What is the primary focus of the national budget?

To improve living standards for poor groups

What is a National Budget Deficit?

A situation where government expenditures exceed its revenues.

What is a Surplus?

When revenues exceed expenditures in a budget.

What is meant by Infrastructure?

The basic physical systems and structures needed for the operation of a society.

What is Revenue in economic terms?

The income generated from normal business operations.