Finance Minister Pravin Gordhan's proposed 2012/13 budget exceeds R1 trillion -- R1.06 trillion -- for the first time ever, with the bulk of spending, R615.7 billion, earmarked for social services.
The biggest slice of the budget tabled in the National Assembly on Wednesday goes to education (R207.3 billion), followed by social protection (R157.9 billion), health (R121.9 billion), and housing and community amenities (R120.1 billion).
For the rest, economic affairs is allocated R145 billion; general public services R141.4 billion, which includes state debt costs of R89.4 billion; defence gets R41.6 billion; and, public order and safety R98 billion.
Revenue is expected to be about R904.8 billion.
Gordhan forecast economic growth will slow to 2.7 percent in the new financial year -- from 3.1 percent in 2011 -- but increase to 4.2 percent in 2014.
The budget deficit was projected at 4.6 percent for 2012/13, four percent in 2013/14, and three percent in 2014/15. National government's net loan debt was set to reach R1.5
trillion in 2014/15.
Gordhan's tax proposals for 2012/13 included R9.5 billion in personal income tax relief, a tax incentive to encourage savings, tax relief for micro and small businesses, a 28 cents a litre increase in the general fuel levies, and the usual "sin tax" increases on cigarettes and alcohol.
A packet of 20 cigarettes will cost 58 cents more, a litre of wine 18 cents, a can of beer 9 cents, and a bottle of spirits R6 more.
The electricity levy increases by one cent a kWh.
The monthly State old age pension and the disability and care dependency grants will rise by R60 a month, to R1200, and R1220 for pensioners over 70.
Foster care grants will go up by R30, to R770, and the child support grant will increase to R280. These would be reassessed if inflation continued to rise.
Consumer price inflation is expected to average 6.2 percent in 2012/12, dropping to 5.1 percent in 2014.
Additional spending plans over the next three years, include R9.5 billion for the economic competitiveness and support package, including R2.3 billion for dedicated special economic zones.
Some R6.2 billion goes to job creation, R3 billion more for equalisation of subsidies to no-fee schools and expansion of access to grade R, R1 billion for national health insurance pilot projects, and R1.4 billion more for early childhood development.
Around R4 billion more goes for passenger rail coaches, R1 billion for rail signalling and depot infrastructure, R4.7 billion for solar water geysers, R1.8 billion for municipal water infrastructure, and R3.9 billion more for upgrading informal settlements.
Sapa
