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Gordhan's Medium-Term Budget Policy Statement| News by Staff Reporter
Finance Minister Pravin Gordhan presents his Medium-Term Budget Policy Statement for 2013
Finance Minister Pravin Gordhan presented his Medium-Term Budget Policy Statement for 2013 to Parliament today.
GDP growth was expected to be 2.1% for the current year, however, employment growth was seen at a disappointing 1.7%.
The Minister promised to keep a firm hand on government expenses, saying that, as from 1 December,2013, no more money would be wasted on luxury vehicles, government credit cards, home upgrades and expensive accommodation.
However, with the government wage bill forming the bulk of the outlay, government expenditure is projected to rise to 32.8% in 2013/14 (R1.14 trillion) against revenue of R999 billion.
Inflation is expected to be 5.9% for 2013, and is predicted to decline to 5.4% by 2016.
Government borrowing is thought to be around R168 billion in 2013/14, down from R178 billion in 2012/13, while total net government debt is expected to be R1.37 trillion (39.3% of GDP) at the end of 2013/14, with further increases thereafter.
The Minister also emphasized that the National Development Plan (NDP) will continue to guide government's allocation of resources for the next three years.