The budget in a nutshell

What the numbers reveal:

Economic growth revised downwards from 1.5% to 0.7% for 2018.

Consolidated budget deficit for 2018-19 revised to 4% of GDP (from 3.6%.)

After rising to 4.2% of GDP in 2019-20, it is expected to stabilise at 4% in outer years.

Gross debt to stabilise at 59.6% of GDP in 2023-24 (February budget projection was 56.2% of GDP in 2021-22).

Tax revenue for 2018-19 projected to fall R27.4 billion short of February estimate due to VAT refund backlog, underestimation of refunds and slower corporate income tax collections.

Expenditure ceiling to be maintained and set to grow at 1.5% in 2021-22. Tax outlook:

No increases in personal income or corporates income tax rates or VAT expected, but personal income tax brackets, levies and excise duties to be adjusted for inflation.

White bread flour, cake flour and sanitary pads to be zero-rated from April 1, 2019, at an estimated cost of R1.2 billion.

Reforms underway at Sars to regularise VAT refund payments and rebuild capacity (reprioritisation of R1.4 billion of budget).

Implementation of carbon tax postponed from January 1 to June 1, 2019. Expenditure:

Public service wage agreement exceeds budgeted baselines by R30.2 billion over medium term. No additional money allocated, national and provincial departments to absorb costs within compensation baselines.

About 85% of increase in wage bill due to higher wages, rather than higher head count.

SAA to receive R5 billion through special appropriation Bill to settle debt redeeming between now and March 2019. This will help prevent call on airline’s outstanding government-debt of R16.4 billion.

SA Post Office receives R2.9 billion to reduce debt levels.

Sanral receives R5.8 billion to compensate for nonpayment of e-tolls, of which R3 billion is an additional allocation.

Reprioritisation of R350 million to recruit more than 2 000 health professionals into public health facilities.