REVENUE: Main budget revenue for 2006/2007 forecast at R446bn from R411bn in 2005/2006.
EXPENDITURE: Budgeted expenditure for 2006/2007 stands at R473bn from R419bn in 2005/2006.
DEFICIT: Shrinks dramatically to R7,9bn (or 0,5% of GDP) and expected at 1,5% in 2006/2007.
DIVISION OF REVENUE: R215bn set aside for national department functions, R176,7bn for provinces and R26,5bn for local government.
PERSONAL TAX: Net benefit for individuals amounts to R13,5bn, 73% of which will go to people earning R250 000 or less. Individuals earning R40 000 (up from R35 000)/year or less are exempt from paying tax. Top marginal rate stays at 40% but threshold rises from R300 000 to R400 000.
TRANSFER DUTIES: Exemption threshold for transfer duty on house purchases rises to R500 000. Houses costing between R500 000 and R1m will attract 5% duty and 8% thereafter. The flat rate for companies and trusts is reduced to 8%.
CAR ALLOWANCES: Private usage threshold rises to 18 000 km. The monthly taxable benefit of a company car goes up to 2,5% of its value.
SOCIAL GRANTS: Welfare spending rises to R80bn. Old age, disability and care dependency grants increase by R40 to R820/month. Foster care grant is up R30 to R590/month. Child support grant rises R10 to R190/month.
RSC (REGIONAL SERVICES COUNCIL) LEVY: Eliminated from June 30, giving businesses a R7bn tax break in 2006/2007.
RETIREMENT FUNDS: Tax is halved from 18% to 9% at a cost of R2,4bn to the fiscus.
EXCHANGE CONTROLS: Offshore individual allowance increases from R750 000 to R2m/person. Foreign direct investment ownership threshold in Africa lowered from 50% to 25% of companies.
SMALL BUSINESS: Taxable threshold is raised from R6m to R14m. Taxable income threshold for a reduced corporate rate of 10% is raised from R250 000 to R300 000. A tax amnesty for small businesses with a turnover under R5m which have not been compliant.
SIN TAXES: Excise duties on sparkling wine is up 20%, cigarettes are up 10%, pipe tobacco 8% and cigars 5%.
FUEL LEVIES: An increase in the Road Accident Fund levy will push up the price of petrol and diesel by 5c/.
CAPITAL GAINS TAX (CGT): The annual capital gain exclusion rises from R10 000 to R12 500. Primary residence exclusion from CGT rises from R1m to R1,5m.
POLICE, COURTS: R5,4bn is allocated to the police service, improvements in courts' administration and capacity of the justice department.
DEFENCE: R3,1bn for defence modernisation and infrastructure. State-owned Denel to get R2bn recapitalisation.
INFRASTRUCTURE: National roads and rail infrastructure get R21bn in 2006/2007 and the Gautrain R7,1bn. Spending on electricity and housing rises to R18bn and R9,6bn respectively.
<SOCCER WORLD CUP 2010: R5bn is dedicated to infrastructure for the World Cup, of which R3bn is to be set aside over the next three fiscal years.
