Presentation of South African National budget of 1991

Finance Minister Barend du Plesis presented in parliament a budget offering a large tax incentive to business, with emphasis directed to the Growth Domestic Products (GDP), which had fallen by 1 per cent in 1990, with a further fall expected in 1991. Du Plesis further indicated that the expenditure would be R85, 000 million, with cuts in deficit spending, but an increase of 15 per cent in social spending. To help fund increased social spending, he stated that Value Added Tax (VAT) would be increased and for the first time it would be added to all foods. The South African Police Service (SAPS), which was responsible for combating an explosion of crimes during 1990, was going to receive R4, 600 million, a 53 per cent increase. The African National Congress (ANC) strongly criticised the budget, calling the level of social expenditure proposed as hopelessly inadequate and alleging that it reflected apartheid priorities in addressing the issues of unemployment and poverty