Finance Minister Enoch Godongwana delivered his budget speech on Thursday, outlining various key points that will impact the economy and society. One of the major announcements was an increase in excise duties for alcohol products.
Alcohol
Godongwana proposed above-inflation increases of between 6.7 and 7.2 percent for 2024/25. This means that various alcohol products will see price increases. For example, a can of beer will cost an extra 14 cents, while a can of cider and alcoholic fruit beverage will also go up by 14 cents. A bottle of wine will cost an additional 28 cents, and a bottle of fortified wine will increase by 47 cents. Sparkling wine will see a price hike of 89 cents, and a bottle of spirits, which includes whisky, gin, or vodka, will increase by R5.53.
Social Grants
Another significant announcement pertained to social grants. Godongwana revealed an increase of R100 to the old age, war veterans, disability, and care dependency grants. The amount will be divided into R90, effective from April, and R10, effective from October. Additionally, there will be a R50 increase to the foster care grant and a R20 increase to the child support grant.
Police & Military
In terms of peace and security, a total of R765 billion has been allocated to the peace and security cluster. This funding will be used for various initiatives, including the training of 10,000 new police recruits. The budget also accounts for the deployment of soldiers in Mozambique and the Democratic Republic of the Congo to maintain regional peace and stability.
The Department of Justice and Constitutional Development will receive an allocation of R628 million for the implementation of recommendations from the Financial Action Task Force (FATF) and the State Capture Commission. This brings the total funding for these efforts to R2.3 billion.
