A Take On The South African 2009 Budget Speech

The Minister of Finance, Trevor Manuel, presented the Budget for the 2009/2010 fiscal year on Wednesday 11 February 2009.

As usual, it was a poetically licensed budget speech, which was in stark contrast to his prosaic tie - recently auctioned off on eBay for R1. The budget encompassed a bit of savings on personal tax, largely to counter the effects of inflation, an increase in the Capital Gains Tax exclusion threshold and lots of talk of tightening of belts. Astutely summed up as follows:

'Once again, if you decided to DRIVE down to the store to FILL UP YOUR CAR, purchase a PACKET OF CIGARETTES or a BOTTLE OF WINE, put them inside a PLASTIC BAG and drive home to read this blog under a normal LIGHT BULB... you will be affected the most. We remain the one country in the world where condoms are free and plastic bags cost an arm and a leg. I suppose the good news is that should you have an accident on the way there, at least The Road Accident Fund may have some money to pay you out.' Posted by a South African blogger on February 12th, 2009.

Instead of posting the usual financial look at the budget we thought we would post some comments made by regular South Africans:

• I am quite happy with Trevor's budget this year... really I have no complaints... Thanks.
• I think Trevor Manuel has been fantastic but why are we bailing out Eskom and SAA? Their executive earns huge packages but don't appear to be earning them. I would be sorry to see Trevor Manuel go, he's in the same category as Mandela, and there will never be another like him. Once he goes, I won't be getting excited about the budget!
• I am very happy about the budget speech of yesterday. I think it will boost our economy, while the NCA (National Credit Act) has made the darkness darker.
• I think, despite the difficulties and challenges that our economy is currently facing, Trevor Manuel managed to make the best budget ever, I'm happy about it, big up Trevor !!
• I think that Trevor has done a really good job this year considering all the influences in the economy. An excellent execution, well done...
• Trevor has made a very interesting budget speech and I think it is the best of them all. Well done Trevor.
• Well done Trevor you really did a good job...but petrol is high.
• You did a great job Trevor, where would we have been without you. We will pray for you to keep on doing good work. We are proud of a man like you.
• It is very unnecessary to give money to kids who get kids. It is a disgrace. There is even a lot of mothers who sit at home and don't make an effort to look for a job, because uncle Trevor is giving us 'mahala' money, Most of them don't even use that money for the kids that is their alcohol money. If the government can create more jobs,(not just for internal staff's families) than this support must be stopped. If you want a child you must support that child, not the tax payer. That's why more children get children, because everything is for free in S.A. Come on guys cut it out!

Budget 2009 Downloads

• National Budget Speech
• Budget Tax Proposals 2009
• Tax Pocket Guide 2009

A reminder that the end of the tax year is looming and with it the opportunity for taxpayers to top up their retirement annuity contributions to receive the applicable tax deductions. For more information link to our recent communiqué Retirement Annuities Explained

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