Mixed bag for individuals in the Budget

The budget speech by Finance Minister Malusi Gigaba emphasised how alleviating poverty and inequality continued to be government’s primary goal.

“This is reflected in the allocation of R528.4-billion on social grants over the next three years‚ the R324-billion provided for higher education and training‚ including R57-billion of new allocations for fee-free higher education and training‚” acting head of Absa Asset Consulting Kwaku Koranteng said.

Koranteng was commenting on the Budget Speech presented by Gigaba in the National Assembly on Wednesday.

Koranteng said the commitment to addressing inequalities in South Africa was also reflected in no punitive tax changes at the lower end of the income bracket‚ which is where the most economic pinch was felt.

However‚ Keorapetse Leballo‚ investment strategist at Absa Wealth and Investment Management said the economic costs of increases in levies on fuel were expected to result in higher transport costs.

In his budget speech‚ Gigaba announced a 52 cents per litre increase in the levies on fuel‚ made up of a 22 cents per litre for the general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy.