Budget Speech 2021 Tito Mboweni

Photo: GCIS / Flickr

Budget Speech: How will SA spend in 2021? Tito makes 15 major pledges

It’s yet another tough, tough Budget Speech for Tito Mboweni – but the Finance Minister has detailed exactly how the Treasury will spend our money in 2021.

Budget Speech 2021 Tito Mboweni

Photo: GCIS / Flickr

The dreaded Budget Speech for 2021 has been delivered by Tito Mboweni on Wednesday – and we’d wager he has probably had easier days at the office. The Finance Minister set out a tough road to recovery for South Africa – but also presented some ambitious spending plans for the country.

Tito Mboweni delivers the Budget Speech for 2021

Less than two weeks on from Cyril Ramaphosa’s State of the Nation Address, Mboweni was left to put the meat on the bones thrown out by the president earlier in February. The future of the R350 grant, funding for the vaccine, and possible tax hikes were all punted prior to this year’s Budget Speech.

Of course, Mboweni’s blueprint took the best part of 60 minutes to deliver – so we’ve decided to sift through the mammoth document, and pull out all the important facts and figures, to get a clearer indication of how our money will be spent. A year of COVID-19, lockdown, and business shutdowns doesn’t half take a toll on the economy, put it that way…

Budget Speech 2021: How will our money be spent this year?

COVID-19 response meaures

R10 billion will be set aisde for the procurement of vaccines. The Department of Tourism will receive R540 million for its recovery programme in 2021. Our strained healthcare industry can look forward to a R248 billion cash injection, too.

A R12 billion ‘contingency reserve’, created to secure more vaccines if needed, will prepare for another possible ‘disaster’.

Social grants detailed at Budget Speech 2021

Provinces will get R3.5 billion from Social Development to improve access to early childhood development services. Nationally, R6.3 billion is allocated to extend the special R350 grant until the end of April 2021. Furthermore…

  • – Old age grant to increase from R1 860 to R1 890.
  • – Old age grant for over 75s to increase from R1 880 to R1 910.
  • – War Veterans Grant to increase from R1 880 to R1 910.
  • – Disability grant to increase from R1 860 to 1 890.
  • – Foster care grant to increase from R1 040 to R1 050.
  • – Care dependency grant to increase from R1 860 to R1 890.
  • – Child Support grant to increase from R445 to R460.

Major government investments in key deparments

The government has committed to a R791.2 billion infrastructure investment drive, to build new towns and restore highways. Learning and culture facilities will receive R402 billion in funding. Meanwhile, the Social Development Ministry will be supported by a R335 billion warchest.

Total funding for employment creation will rise to nearly R100 billion. This is in response to the job creation targets for young people, outlined by the President, Cyril Ramaphosa.

Land reform, small businesses, and fighting corruption

Government plans to finalise 1409 restitution claims at a cost of R9.3 billion over the next three years to achieve redress and equitable access to land. The Department of Agriculture has also set aside R896.7 million for post-settlement support

Mboweni also noted that a total allocation of R7 billion is made to the Land Bank. This funding will help to resolve the bank’s current default, and re-establish the development and transformation mandate.

The Department of Small Business Development has allocated R4 billion for township and rural enterprises, and the Department of Justice and Constitutional Development is allocated R1.8 billion to improve business processes. This allocation will support the fight against crime and corruption.

  • Sidenote: The economy contracted by 7.2% in 2020. Growth of 3.3% expected this year. Growth will moderate to 2.2% next year.