The whole point of the Finance Minister’s Budget Speech is to let the country know how the government is planning to spend our hard-earned taxes in the year ahead, right? So wouldn’t it be lekker if he used language everyone could understand without having to secretly Google “Debt-to-GDP ratio” under the desk?  

We think so and have put together a handy glossary of terms that always crop up so, if the boss wants your take on the gross domestic product numbers or fiscal consolidation afterwards, you’re covered. (No sweaty palms. No glazed eyes. You’re welcome).

Budget buzz words explained

1. Fiscal deficit
The gap between what government actually has in its coffers and what it is spending. Kind of like when your debit orders hit before payday.  

2. Debt-to-GDP ratio
Think of it as the size of SA’s credit card bill versus its salary. IYKYK.

3. GDP (Gross Domestic Product)
Sounds lofty but, basically, the number that’s put on the country’s economic performance, based on what gets produced/sold/done each year. 

4. Inflation
The gradual increase in prices over time. You know. That sinking feeling when your shopping trolley is half as full as it used to be but seems to cost twice as much.

5. VAT (Value Added Tax)
A little, teeny tax (currently a sweet 15% on the price of most purchases), that helps the government collect the money it needs to make the economic wheels go round.  

6. Sin tax
The special bonus government adds to the prices of alcohol and cigarettes. Effectively a slap on the wrist for indulging in those bad habits we can’t break.  

7. Excise duty
Another tax that’s applied to specific items like booze, fuel, cigarettes and vaping products but differs from Sin Tax because it’s payable at the point of manufacture, rather than sale. Call it Sin Tax’s serious older sibling.

8. Public sector wage bill
The salary costs for all government employees. Translation: the state’s payroll … which, incidentally, has nudged north of a whopping 30% of the total budget.

9. Social grants

Monthly support payments for vulnerable, low-income and unemployed South Africans. The difference between coping and chaos for more than 28 million households.  

10. Infrastructure spending
The money that keeps roads paved, lights on and buildings standing — all the things we tend to take for granted until they stop working.

11. Loadshedding relief
Government trying to fix Eskom without saying “oops” too loudly. Nuff said.

12. Budget shortfall
When the numbers don’t add up and, instead of funding  things, Treasury gets the scissors out.

13. Treasury
South Africa’s money manager. The Debbie Downer in the group chat who always has to ask whether that expense is reaaaally necessary.

14. Revenue
The money government collects from taxes. Basically: the country’s income stream.

15. Expenditure
The money government spends, using the tax revenue it has collected. The target is for finance ministers and (ahem) households to limit spending to what’s actually in the purse.  

16. Austerity measures
Government cutting out the frills and tightening the belt. Hopefully just to the notch that lets you breathe without cutting off your circulation.  

17. Tax bracket creep
When your salary goes up (yay!) but inflation pushes you into a higher tax bracket… and SARS says: “We’ll have more of that, thanks.”  

18. Economic growth
When the economy is expanding. More jobs, more business, more to go around and life is better for everyone. Happiness.

19. Bond markets
A financial marketplace where the government borrows money from investors to fund big public projects. Not unlike that overseas uncle with deep pockets who helps you buy your house today, in exchange for a hefty chunk of interest tomorrow.  

20. Credit rating
South Africa’s financial report card. And yes… Moody’s IS judging us.

21. Primary budget balance
The budget before interest on debt (from loans etc.) are included. AKA: “If we just look at the credit card bill and ignore the interest payment… are we doing okay?”  

22. Medium-term budget policy statement (MTBPS)
Even the acronym for this one is a tongue-twister.  Essentially, it’s an annual pre-budget update to check if last year’s plan is still planning.

23. Structural reform
Hmm. This refers to major incoming changes that are designed to improve the economy on the long-term and might (ok, will) come with a side-order of pain for the foreseeable.

24. Consolidation
Not much different from your average DIY debt-consolidation strategy. It’s the government’s nice way of saying they’re working on creative ways to reduce borrowing and spending.  

We could go on, but that should have you covered and, just for fun, here are a few of our favourites. If we had a million rand for every time the minister dropped one of these beauts, there’d be no worries about a fiscal deficit …

“We’re facing some ‘tough choices’"
Loosely translated as: “Brace yourself, it’s going to get ugly.”  

“We remain committed…”
Right out of the Politics 101 handbook. Try to resist the eye-rolling.  

“Increased efficiency”
Translation: “We’re going to do far better, with far fewer resources.” Hey, hey. We see those eyes swivelling.  

“No new taxes”
Just kidding ;)

If you get through a budget speech without hearing almost all of these, you’ve either dozed off or the Minister’s speechwriter has gone seriously AWOL. But either way, with your handy Fedgroup budget speech buzzword decoder on hand at the upcoming Budget Speech, you’ll be able to translate the finance lingo in nano-seconds.