FRESH START FOR SOUTH AFRICA
Category Message from the Director of REP
We are all excited to feel the sense of a new beginning with our newly elected President Cyril Ramaphosa's and his State of the Nation Address on Friday.
Finance Minister Malusi Gigaba's Budget Speech in the National Assembly on Wednesday afternoon was all about rebuilding and restoration in challenging times.
The property market, which was badly affected by both the drought and the lack of confidence in the National Government by both South Africans and Foreigners, is now set to make a big comeback. Rains have started falling in Cape Town, desalination plants are almost up and running, boreholes have been drilled and struck water. All of these things are giving Cape Town a feeling of huge relief and will ensure a revival in the property market.
The state's contingency reserve will also be strengthened, with a provisional allocation of R6bn set aside in 2018/19 and R10bn over three years for, among others things, drought relief and augmenting public infrastructure.
Social grants were increased.
In all, the budget could be described as balanced and responsible which is a nice change from recent years.
Some of the highlights of the Budget Speech for me are:
- The economy has benefited from strong growth in agriculture, higher commodity prices and, in recent months, an upturn in investor sentiment.
- The global economic recovery mean that there is a supportive environment for South Africa to expand trade and investment. The government will hopefully promote good governance and sound financial practices with an experienced Businessman at the helm.
- Exports are expected to grow.
- Consumer inflation is expected to fall.
- They have budgeted to spend
- R125.8bn on water infrastructure and services.
- R207.4bn (R189bn) to provide basic services to poor households.
- The VAT rate will increase from 14% to 15% from April 1 2018.
If they stick to what they say then Social grants will be increased and hopefully reduce crime.
The specific increases in the different grants are:
- State old age grant from R1 600/month to R1 695.
- State old age grant for over 75s will be increased from R1 621 to R1 715.
- War veterans grant will go up from R1 620 to R1 715.
- Disability grant will increase from R 1 600 to R1 695.
- The foster care grant is set to go up from R920 to R960.
- The child care dependency grant is set to rise from R1 600 tot R1 695.
- The child support grant will be increased from R380 to R405.
Through good times and bad we will keep helping our sellers sell those properties and our buyers to find their dream homes. If we are all positive our Country can only go from strength to strength. Have a great year ahead.
Author: Rose Eedes