Fuel Levy
* Fuel levy up 10c/litre from 4 April 2007.

Capital Gains Tax
* Annual exclusion threshold for capital gains or losses will be increased from R12 500 to R15 000.
* Manuel increases the monetary threshold below which no capital gains tax is imposed at death from R60 000 to R100 000.

Social Services
* 2007 spend: R326.4bn
- Education: R105.5bn
- Welfare: R89.4bn
- Health: R62.6 bn
- Housing: R45.3bn

* Total Expenditure up 12.3%
- Education: up 11%
- Welfare: up 10.5%
- Health: up 9.8%
- Housing: up 18.1%

* Welfare will receive R62.4 bn, or 13% of the social services budget.
* Old age pensions, disability and care-dependency grants increase by R50 a month, child-support grants up by R10.
* Education remains the single largest category of national and provincial spending.
* R8.1 bn extra allocated for salaries of teachers, assistants and support staff.
* Health receives R7.2 bn extra for HIV/Aids cover, additional pay for health workers and improvement of hospitals.
* Spending on dedicated HIV/Aids programme will exceed R5 bn by 2009/10.
* Housing will be allocated R32 bn over the next three years in an attempt to reduce significant backlogs and fast-track housing delivery.

Corporate Tax
* Manuel replaces secondary tax on companies with a dividend tax and reduces the rate from 12.5% to 10%.
* The conversion to a dividend tax collected at shareholder level scheduled to be completed by the end of 2008.
* Capital Gains Tax will be charged on sale of equities held for more than three years.

Protection Services
* Over 152 000 police officers have been recruited since 03/04 fiscal year.
* Resources allocated for fighting crime increased from R33 bn in 2006/2007 to R44 billion in 09/10.
* Additional R 2.4 billion allocated for police expansion, technology and forensics equipment.
* 190 000 police will be employed by 2010, in an effort to ensure safety for the World Cup.
* Justice has seen a rise of 41% in the past 3 years, and can expected a further rise of 52% over next 3 years.
* Allocation of R1.5 bn for court capacity and accelerating court administration.

Transport
* Public transport receives further R 2.3 bn for World Cup preparations.
* SA National Road Agency and Rail Commuter Service receive R1.7 billion to improve roads, stations and areas
critical to the World Cup.
* Over R9 bn allocated for municipal transport, roads and precinct upgrading.
* R 8.4 bn set aside for construction and upgrading of stadiums remains within budget.

Macro-economics
* The economy grew at 4.9% in 2006. GDP is expected to grow 4.8% in 2007/08 and grow by an average 5% a year over the next three years.
* CPIX averaged 4.6% in 2006. That's compared to 3.9% in 2005.
* CPIX is expected to remain in the 3 - 6% target range in 2007.
* The National Treasury has reported a surplus of 0.6% of GDP. This is its first surplus ever.
* Revenue in 2007/08 is forecast at 28.1% of GDP, leading to a surplus of 0.6% of GDP, or R10.7 billion.
* South Africa can expect a deficit of 0.1% of GDP in 2008/09.
* Tax revenue has grown an average 17% a year over the last three years.
* Government will spend R2 trillion over the next three years.
* State debt service costs as a percentage of GDP fall from 3% in 2006/07 to 2.1% in 2009/10.
* Manuel: A greater expansion in the volume and value of exports needed to lift and sustain the economy’s growth rate beyond
6 % per year.
* Current account deficit expected to be 5% over the medium term.
*Manuel: Capital inflows expected to cover the current account deficit as rand-denominated assets remain attractive to foreign investors.
* Employment in non-agricultural fields rose over 3 per cent in the first 9 months of 2006.
(December 2006 Quarterly Employment Statistics)

Response to Budget
"We have very sound predictions for a budget that is effectively in balance and growth averaging around 5pct. This will be good news but I think there might be some market disappointment that the government is keeping to its gradual approach to exchange control dismantling."
- Razia Khan: Africa Economist, Standard Chartered.

"The good news which is quite expected is the surplus…it does confirm the very strong fiscal strength of South Africa compared to other emerging markets, so that’s positive."
- Claire Dissaux: Calyon

"It’s fairly in line with expectation, I think it is a cautious budget – he is not giving too much back in the way of taxes. I think there are two reasons. He is not sure if it’s sustainable at these levels and the second is he probably doesn’t want to overstimulate the economy."
- Dennis Dykes: Chief Economist, Nedbank

"Obviously the budget surplus will be reducing the bond supply and the government borrowing and that is good for bonds on an overall basis."
- Elisabeth Gruie: Strategist at BNP Paribas in London

"Currency volatility has long been seen as a constraint to growth so it is very encouraging that steps are being taken to improve trading conditions in the market and reduce volatility."
- Marisa Fassler: Economist, JP Morgan

"The change in the secondary tax on companies is a good thing. We are getting in line with international standards while the scrapping of the retirement of tax will help in the savings culture of South Africa and the ability of people to provide for themselves in the future."
- Nico Kelder: Economist, Efficient Group

"There is very little here to stimulate the supply side of the economy. I am very disappointed that the marginal rate on corporate and individual tax was not looked at."
- Chris Hart: Economist, ABSA Capital

"In general the budget looks like a continuation of the budget policies over the last couple of years…without major changes that should shock the markets."
- Lars Christensen: Senior Economist, Danske Bank in Copenhagen

"The proposal for a dividend tax on firms replacing secondary tax is positive news. It will make South Africa more competitive with other countries and it will encourage foreign investments in South Africa."
- Charles De Wet: Partner in PriceWaterHouseCoopers

"With this allocation, we are now in a position to commence consultations with employee organisations on these proposals that will lead to improvement in remuneration for health workers, particularly the nurses."
- Sibani Mngadi: Department of Health spokesperson

"The announced increases will, no doubt, further fuel the growth in illicit trade at the expense of government and the legal industry."
- Francois van der Merwe: Head, Tobacco Institute

"Given the major development challenges faced by South Africa… of poverty of inequality and of service delivery, we're looking for bolder action on those fronts. We're looking for the projected surplus and the actual surplus to be used to tackle the immense crisis of unemployment in this society.”
- Ebrahim Patel: Cosatu spokesperson

"What has been critically been left out is the whole question of Manuel paying lip service to really increasing the growth rate of our economy. He has put primary targets but if you look at it, clearly he has done nothing. There is no reduction in corporate tax. It has all been replaced by dividend tax."
- Ian Davidson: Democratic Alliance spokesperson on finance