ISSUED BY: National Treasury

Tel: (012) 315 5757

www.treasury.gov.za

HIGHLIGHTS
BUDGET FRAMEWORK MACROECONOMIC OUTLOOK – SUMMARY

• A budget deficit of 3.4 per cent of GDP is expected for 2016/17,

2016 2017 2018 2019
narrowing to 2.6 per cent in 2019/20. Percentage change
• Debt stock as a percentage of GDP is expected to stabilise at 48.2 per cent Estimate Forecast
in 2020/21.
Household consumption 0.9 1.3 2.0 2.3
• The main budget non-interest expenditure ceiling has been lowered by
R26 billion over the next two years. Gross fixed capital formation -3.6 1.5 1.6 2.8
• R28 billion in additional tax revenue will be raised in 2017/18. Measures Exports -1.2 1.9 4.9 5.0
to increase revenue by a proposed R15 billion in 2018/19 will be outlined
in the 2018 Budget. Imports -3.6 2.0 4.3 4.9
• R30 billion has been reprioritised through the budget process to ensure Gross domestic product 0.5 1.3 2.0 2.2
that core social expenditure is protected.
• Real growth in non-interest spending will average 1.9 per cent over the CPI inflation 6.4 6.4 5.7 5.6
next three years. Apart from debt-service costs, post-school education Balance of payments current
is the fastest-growing category, followed by health and social protection. -4.0 -3.9 -3.7 -3.8
account (percentage of GDP)

SPENDING PROGRAMMES CONSOLIDATED GOVERNMENT FISCAL FRAMEWORK

Over the next three years, government will spend:
• R490.4 billion on social grants. 2016/17 2017/18 2018/19 2019/20
• R105.9 billion on transfers to universities, while the National Student
Revised
Financial Aid Scheme will spend R54.3 billion. R billion/percentage of GDP Medium-term estimates
estimate
• R751.9 billion on basic education, including R48.3 billion for direct
subsidies to schools, R42.9 billion for infrastructure, and R12.7 billion for Revenue 1 297.3 1 414.1 1 535.2 1 668.5
learner and teacher support materials.
Percentage of GDP 29.4% 29.8% 29.9% 30.1%
• R114.8 billion on subsidised public housing.
• R94.4 billion on water resources and bulk infrastructure. Expenditure 1 445.2 1 563.1 1 677.1 1 814.3
• R189 billion on transfers of the local government equitable share to Percentage of GDP 32.8% 33.0% 32.7% 32.7%
provide basic services to poor households.
• R142.6 billion to support affordable public transport. Budget balance -147.9 -149.0 -141.9 -145.8
• R606 billion on health, with R59.5 billion on the HIV/AIDS conditional Percentage of GDP -3.4% -3.1% -2.8% -2.6%
grant.
Gross domestic product 4 409.8 4 741.2 5 129.2 5 545.5

TAX PROPOSALS
CONSOLIDATED GOVERNMENT EXPENDITURE,
In 2017/18: 2016/17 – 2019/20
• A new top marginal income tax bracket for individuals combined with
partial relief for bracket creep will raise an additional R16.5 billion. 2016/17–
• R6.8 billion will be collected through a higher dividend withholding tax 2016/17 2017/18 2018/19 2019/20
2019/20
rate. Increases in fuel taxes and alcohol and tobacco excise duties will
together increase revenue by R5.1 billion. Average
Revised
R billion Medium-term estimates annual
• As soon as the necessary legislation is approved, government will estimate
growth
implement a tax on sugary beverages.
• A revised Carbon Tax Bill will be published for public consultation and Basic education 226.6 243.0 261.3 280.1 7.3%
tabling in Parliament by mid-2017. Health 170.9 187.5 201.4 217.1 8.3%
Defence, public order
190.0 198.7 210.8 225.0 5.8%
and safety
TAX REVENUE 2017/18 Post-school education
69.0 77.5 80.9 89.8 9.2%
and training
Personal Economic affairs and
R482.1 bn income tax agriculture
227.7 241.6 255.9 273.8 6.3%

Human settlements and

179.8 195.8 210.2 226.4 8.0%
R312.8 bn VAT municipal infrastructure
General public services 70.0 70.7 72.5 75.6 2.6%
R218.7 bn Corporate income tax Social protection 164.9 180.0 193.5 209.1 8.2%

Allocated expenditure 1 298.9 1 394.8 1 486.4 1 597.0 7.1%

R96.1 bn Customs and excise duties
Debt-service costs 146.3 162.4 180.7 197.3 10.5%
R70.9 bn Fuel levies
Contingency reserve – 6.0 10.0 20.0

Consolidated
R84.9 bn Other 1 445.2 1 563.1 1 677.1 1 814.3 7.9%
expenditure

Budget 2017 Highlights Card_FINAL.indd 1 2017/02/17 6:26 PM

 ISSUED BY: National Treasury
Tel: (012) 315 5757
www.treasury.gov.za

BUDGET 2017/18 EXPENDITURE

CONSOLIDATED
SOCIAL
GOVERNMENT R1.56 TRILLION R884 BILLION SERVICES
EXPENDITURE

Economic infrastructure R89.5bn Basic education R216.7bn

and network regulation
University subsidies R31.6bn
Employment, labour affairs R75.9bn
and social security funds
Skills development levy R21.1bn
institutions
Industrial development R28.9bn
and trade
Education administration R15.8bn
Agriculture, rural
development and land reform R26.5bn National Student Financial
ECONOMIC R15.3bn
AFFAIRS & EDUCATION Aid Scheme
AGRICULTURE Science, technology, innovation
R20.6bn R320.5bn
R241.6bn and the environment Technical and vocational R7.4bn
education and training

Police services R93.8bn District health services R83.6bn

Defence and state security R54.0bn Central hospital services R35.9bn

Law courts and prisons R43.8bn Provincial hospital services R32.3bn

Home affairs R7.2bn Other health services R25.8bn

HEALTH
DEFENCE & PUBLIC SAFETY R187.5bn Facilities management
R9.9bn
R198.7bn and maintenance

General public administration Municipal equitable share R72.9bn

R43.9bn and infrastructure grant
and fiscal affairs

Executive and legislative organs R14.3bn Human settlements, water and R52.8bn
electrification programmes
External affairs and foreign aid R12.4bn
GENERAL Public transport R44.1bn
ADMIN LOCAL DEVELOP-
MENT AND Other human settlements
R70.7bn INFRASTRUCTURE and municipal infrastructure
R26.0bn
R195.8bn

Old-age grant R64.5bn

Child-support grant R56.3bn

Disability grant R21.2bn

Provincial social development R19.2bn

DEBT-SERVICE SOCIAL
PROTECTION Other grants R10.7bn
COSTS
R162.4bn R180.0bn Policy oversight and grant R8.3bn
administration

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