BUDGET IN A NUTSHELL

Revenue: rose to R265,2bn - R15bn more than expected - and is estimated to rise to R313,2bn by 2004/2005. The deficit will amount to R22,7bn (2,1% of GDP) next year, falling to 1,7% in 2004/2005.

Personal tax: Cuts will put R15bn back into taxpayers' pockets. Individuals earning below R27 000 will not pay tax.

Business tax: Accelerated depreciation allowances for manufacturing assets. Tax relief for small business is extended.

Sin taxes: Tobacco taxes go up 12%, raising the cost of a pack of 20 cigarettes by 34c. Wine duties go up 8%. Spirits and sparkling wine will rise R1,08/bottle. Beer and cider will cost an average 3,2c/can more. Sorghum beer duties unchanged.

Fuel duties: Petrol costs go up 2c/l thanks to an increase in the Road Accident Fund levy. The standard excise duty on petrol and diesel remains unchanged. Alternative fuels attract only 70% of the general levy.

House transfer duties: Transfer duties fall. A R300 000 property, which used to cost R13 000 for a transfer of ownership, will cost R9 900 from April.

Banking taxes: Levies on warrants, bond issues, home bond transfers and various personal short term insurance policies have been dropped.

Tax exemptions: Estate duty exemption is raised to R1,5m. Bursary and scholarship exemptions are raised. The R1 000 threshold for medical expense deductions is eliminated. The deduction for intellectual property is raised to R5 000.

Expenditure: Government expects to spend R287,9bn next year, rising to R334,6bn in 2004/2005. Real spending on services will grow 4,1% per year over the next three years, while debt servicing falls from 4,8%/year last year to 4,1%.

Education: Takes the largest slice at 24% of non-interest expenditure. The allocation will rise from R59,8bn this year to R68,3bn in 2004/2005.

Health: Grant of R3,7bn to provinces for specialised hospital care will rise to R4,2bn in the next three years. Professional training will be subsidised with R1,3bn increasing to R1,4bn in three years. R1,6bn will go towards upgrading hospitals in the same period.

HIV/Aids: Provincial health departments' R4bn spending on Aids-related illnesses will be augmented by R1bn next year for Aids-prevention programmes, hospital treatment and community-care programmes. These include mother-to-child transmission, TB medication and treatment of pneumonia and opportunistic diseases. Additional spending is to rise to R1,8bn by 2004/2005.

Debt: Net loan debt is R425,1bn, or 42,9% of GDP, from over 48% five years ago. Projected to decline to 37,4% by end-2004/2005. The cost of servicing the debt will be R47,5bn in 2002/2003, 4,4% of GDP.

Welfare: Social grants for the elderly, disabled and war veterans increase by R50/month to R620. Child support grants rise R20/month to R130.

Provinces: The provinces receive the biggest transfers from the Treasury: R121,2bn this year rising to R132,4bn next year and R152,4bn in 2004/2005 at an average annual growth rate of 7,9%.

Local government: The 18,3% annual increase in spending on local government is the largest sectoral increase budgeted for the next three years, rising from R6,6bn this year to R10,9bn in 2004/2005.

Housing subsidies: Expected to grow from R3,2bn this year to R4,3bn in 2004/2005.

Protection services: Justice receives a 17% boost. The police (9% up) are able to recruit 16 000 new officers over the next three years. Correctional Services' expenditure rises just 5,5%, though prison populations bulge. Together the three departments dealing with crime will receive R31,8bn this year.

Contingency reserve: A contingency reserve provision of R3,3bn, rising to R9bn by 2004/2005, has been established to cope with expected inflation and civil service wage increases.

Social services:v Eskom will receive R950m this year for rural electrification. Spending on roads and rail increases to R1bn. Water & Forestry receives R3,6bn for extension of rural water and sanitation. The Post Office receives R300m/year for restructuring. The Unemployment Insurance Fund will spend R74m on restructuring. Sustainable land reform gets R1,1bn, expected to contribute to job creation. Rural and urban development projects receive R700m this year, rising to R2bn in 2004/2005.

GDP growth: Growth is expected to be 2,3% this year and 3,3% in 2003, after slowing to 2,2% in 2001.

Inflation: Government estimates CPIX inflation will average 6,9% this year, missing the target range of 3% to 6%, thanks to the collapse of the rand late last year. CPIX is expected to fall in subsequent years.

Balance of payments: The current account will register a deficit of 0,5% of GDP in 2002.