In the 1978-9 Budget estimates announced on 30 March, South African government expenditure is to rise by R636 million to R9811 million. State spending in the departments responsible for the maintenance of apartheid and the suppression of political dissent is as follows (change on 1977-8 in brackets): Defence: R1554.4m (down R100m) Plural Relations (formerly Bantu Administration): R 555.3m (down R 64m) National (white) education: R 326.3m (up R39m) Black education: R 143.9m (up R26.4m) Police: R 220.5m (up R16.5m) Prisons: R 92.2m (up R11.4m) Justice: R 49.9m (up R 5.2m) Indian Affairs: R 96.7m (up R11.4m) Coloured Affairs: R 274.9m (up R34.9m) Foreign Affairs: R 180.8m (up R33.4m) Prime Minister's Dept.: R857,000 (down R22.9m)
The decrease in Bantu Administration (Plural Relations) spending is accounted for by i) the removal of black education to a separate estimate ii) the transfer of certain Transkei and BophuthaTswana spending to the Foreign Affairs estimate iii) the transfer of spending on SWA homelands to the new SWA Vote (not included in SA Budget estimates).
The decrease in Defence spending is thought to be accounted for partly by the arms embargo, which prevents the purchase of certain equipment, and also by the creation of a new secret services account which may be drawn on for defence needs. At the same time however provision is made for defence spending to rise to R1899.2 million taking existing credits into consideration.
The decrease in the Prime Minister's Vote is accounted for by the transfer of the BOSS account to the Secret Services account. Of the Prime Minister's Vote, R66,000 is allocated for PISCOM.
SECRET SERVICES ACCOUNT A total of R34.4 million has been budgeted for a new Secret Services Account, not subject to public audit. This money may be drawn on by other departments (e.g. Defence) for secret spending, and also covers BOSS spending. Taking the money for PISCOM into account, expenditure on secret services will rise by R20.3 million on 1977-8.
POLL TAX ABOLISHED Among the revenue changes announced in the Budget is the abolition of the Bantu General Tax or poll tax of R2.50 p.a. paid by every African adult male and dating from the last century.
At the same time, cuts in income tax were announced, benefitting white wage-earners and those in higher income brackets most. The discriminatory tax system, whereby the tax threshold for blacks is about half that for whites and certain allowances cannot be claimed by blacks, is retained, so that blacks will continue to pay proportionally more tax.
The revenue loss from direct taxation will be replaced by a new General Sales Tax of 4%, an indirect tax to be levied on all consumer goods including food, which will also have the effect of taking more money from the lower-income (black) sections of the population.
VORSTER'S SALARY The Prime Minister's salary has been increased to R63,177 p.a. (including what is described as a 'reimbursive allowance' of R19,953). Cabinet ministers will receive R30,345 p.a. (inc. R6,753 reimbursive allowance) and Deputy Ministers R26,025 p.a. (inc. R6,753 reimbursive allowance).
