January 2010 - SA 2010 Budget Summary (SARS)

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On the economy

• Economic growth of 2.3 per cent is projected for 2010, increasing to 3.6 per cent by 2012.

• After falling from 27 per cent in 2003 to 22 per cent in 2007, unemployment rose to 24.3 per cent in 2009.

• The 2010 FIFA World Cup is expected to contribute about 0.5 per cent of GDP growth in 2010. To date, government has spent about R33 billion in preparation for the tournament.

• Inflation has fallen over the past year and should average 6 per cent during 2010/11.

• A budget deficit of 7.3 per cent is projected for 2009/10 and 6.2 per cent in 2010/11. By 2012/13, the deficit is expected to reach 4.1 per cent.

• National government net loan debt is projected to rise from R526 billion at the end of 2008/09 to R1.3 trillion in 2012/13.

• To help tackle youth unemployment, a wage subsidy for young people is proposed.

• Total public sector infrastructure investment of R845 billion over the next three years is anticipated.

• Over the next three years, government will spend about R52 billion on public works programmes.