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Budget Speech 2016

Introduction

 

 

2016

 

Budget Speech

 

 

 

Pravin Gordhan

 

Minister of Finance

 

 

 

24 February 2016

 

Honourable Speaker

 

Mister President

 

Mister Deputy President

 

Cabinet Colleagues and Deputy Ministers

 

Governor of the Reserve Bank

 

MECs of Finance

 

Fellow South Africans

 

 

I have the honour to present the 2016 Budget of President Zuma’s second administration.

 

We do so in a spirit of frankness, both about our challenges and the opportunity to turn our economy’s direction towards hope, confidence and a better future for all.

 

Low growth, high unemployment, extreme inequality and hurtful fractures in our society – these are unacceptable to all of us.

 

I have a simple message. We are strong enough, resilient enough and creative enough to manage and overcome our economic challenges.

 

All of us want jobs, thriving businesses, engaged professionals, narrowing inequality, fewer in poverty.

 

All of us want a new values paradigm, a society at peace with itself, a nation energised by the task of building stronger foundations for our future society and economy.

 

We want our government to function effectively, our people to work in dignity, with resources for their families, decent homes and opportunities for their children.

 

We want to see progress throughout our land, in agriculture, manufacturing, mining, construction, tourism, science and research, sport and leisure, trade and commerce.

 

It is within our grasp to achieve this future.

 

It requires bold and constructive leadership in all sectors, a shared vision, a common purpose, and the will to find common ground. Above all we need action, not just words.

 

Let us unite as a team, sharing our skills and resources, building social solidarity, defending the institutions of our democracy and developing our economy inclusively.

 

We do have a plan, to:

 

• Manage our finances in a prudent and sustainable way,
• Re-ignite confidence and mobilise the resources of all social partners,
• Collectively invest more in infrastructure to increase potential growth,
• Give hope to our youth through training and economic opportunities,
• Protect South Africans from the effects of the drought,
• Continuously improve our education and health systems,
• Accelerate transformation towards an inclusive economy and participation by all,
• Strengthen social solidarity and extend our social safety net.

 

The Budget rests on the idea of an inclusive social contract, encompassing an equitable burden of tax and a progressive programme of expenditures.

 

The Budget relies on institutions of good governance and a public ethic that values honesty and fairness.

 

If we act together, on these principles, as public representatives, civil servants, business people, youth, workers and citizens, we can overcome the challenges of tough economic times and difficult adjustments.

 

In acting together we can address declining confidence and the retreat of capital, and we can combat emerging patterns of predatory behaviour and corruption.

 

We are conscious of the difficulties we face. Our resilience as a nation, black and white, can propel us to a better future if we make the right choices.

 

Honourable Speaker, I hereby table before the House:

 

• The 2016 Budget Speech,
• The 2016 Budget Review, including
o The fiscal framework,
o The revenue proposals, customs and excise duties and estimates of national revenue, and
o Our responses to the Budgetary Review and Recommendation Reports,
• The Division of Revenue Bill,
• The Appropriation Bill, and
• The Estimates of National Expenditure.

 

In addition, I am introducing the Revenue Laws Amendment Bill 2016 to adjust certain provisions regarding to retirement funds, and related matters.

 

These are our budget proposals, and I look forward to further engagement through the Parliamentary budget process.