Debt is projected to stabilise at bu.9 % of GP in 2026 26. Government has pencilled in a primary surplus (when total revenue exceeds non interest expenditure) for 2024/25. This depends on many things, including a 1.2%% annual wage increase over three years for public servants. This will result in cuts to the wage bill of 8303-billion over the next four years including 2020121. Social grants increased by less than inflation. The Land Bank was the only SOE to be bailed out - to the tune of R9-bilion over three years. The government has allocated R9 billion to the Covid-19 vaccination campaign over the medium term. The balance will be funded by the private sector. Debi-service costs will average 20.9%% of gross tax revenue over the medium term, that is 21c of every rand is spent servicing interest. Total government spending will amount to R2-trilion every year for the next three years. Big-ticket items include R402.9-bilion on learning and culture, R335.2-billion on social development and R248.8-billion on health in 2021/22 Funding for new and urgent priorities (vaccines) is provided through reprioritisation and reallocation of existing baselines. No personal tax hikes! The intention to raise R40-billion over the need four years did not materialise, thanks to better- thanexpected revenue collection. Also, personal income tax brackets will shift upwards by more than the inflation rate of 4%. Corporate tax will decline from 28% to 27%. Excise duties on alcohol and tobacco rise by a hefty 8%% for 2021/22. The fuel levy will increase by 150litre while the RAF levy will increase by 1 1elite. The UIF contribution ceiling will be set at R17 711.58 per month from 1 March. Mass public employment programmes are allocated Ril1-billion. BM Source: https./iwww.gov.zalspeeches/minister-tito-mboweni-2021-budget-speech Answer ALL the questions in this section. QUESTION 1 (40 Marks) 1.1 Provide a review of the above budget speech and discuss the implications of increase in excise duties, debt in government, and increase in fuel levy and decrease in corporate tax. (25 marks) 1.2 Mboweni announced a 1.2%% annual wage increase over three years for public servants and this will result in cuts to the wage bill of R303-billion over the next four years including 202021. Elaborate on the implications of such a move with labour unions. (5 marks) 1.3 The minister has allocated R1 1- billion for mass public employment programmes. Extensively advise which programmes should the goverment implement to create jobs in the country- (10 marks)