By: Natasha Archary
Finance Minister Enoch Godongwana delivered his 2024 Budget Speech on Wednesday, 21 February boosting social grants and increasing sin taxes.
Godongwana’s ambitious spending plans comes during the country’s sluggish growth and high debt, but says government’s plan to cut costs by implementing a global minimum corporate tax amongst other measures.
To keep up with the pace of inflation, Godongwana has increased permanent social grants which will be effective from April as follows:
- An increase of R100 to the old age wage, war veterans, disability and care dependency grants. This will be split into R90 effective from April, and R10 effective October
- R50 increase to the foster care grant
- R20 increase to the child support grant
With regards to the Covid-19 Social Relief of Distress Grant (SRD), Godongwana says there is a plan underway to improve the grants by April.
“National Treasury will work with the Department of Social Development in ensuring that improvements in this grant are captured in the final regulations.
These improvements will be within the current fiscal framework.
For the extension of the grant beyond March 2025, the social security policy reforms, together with the funding source will be finalised.”
Finance Minister Enoch Godongwana
Boost for National Health
National Health has been allocated R848 billion to address the 2023 wage agreement, infrastructure upgrades and to compensate for the National Health Insurance grant.
According to Godongwana the grant will be used towards:
- Building a national health information system and digital patient records
- Upgrading health facilities and improving quality care to ensure that they meet the minimum criteria to be certifed and accredited for contracting under the NHI
- Strengthening facility and district management in preparation for contracting
- Granting semi-autonomous status for central and potentially other hospitals, and
- Developing reference prices and provider payment methods for hospitals.
The Minister of Finance, Mr Enoch Godongwana, presented the Budget Speech to the Members of the National Assembly today at 14:00 PM #BudgetSpeech2024 #SouthAfrica #LeaveNoOneBehind #Itspossible pic.twitter.com/Hglsc2i71X
— DEPARTMENT OF SCIENCE & INNOVATION (@dsigovza) February 21, 2024
R5.53 more for a bottle of whisky, gin or vodka
Sin tax increases have been increased above-inflation increases due to excise duties, and these are between 6.7% and 7.2% for 2024/25.
A bottle of whisky, gin or vodka will cost R5.53 more, and the increase in sin tax also includes an increase of the excise duty on vapes at R3.04 per millilitre.
- A can of beer increases by 14 cents;
- A can of a cider and alcoholic fruit beverage goes up by 14 cents;
- A bottle of wine will cost an extra 28 cents;
- A bottle of fortified wine will cost an extra 47 cents;
- A bottle of sparkling wine will cost an extra 89 cents; and
- A bottle of spirits, including whisky, gin or vodka, increases by R5.53.
Cigarette and cigarette tabacoo excise duties increase by 4.7% and 8.2% for pipe tabacco and cigars.
This translates to:
- R9.51 for cigars
- 97c for a pack of cigarettes
- 57c for a pipe of tabacco
The full Budget Speech 2024 can be found here: https://www.gov.za/news/speeches/minister-enoch-godongwana-2024-budget-speech-21-feb-2024
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