To read the full 2012 Budget speech click here

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PREDICTIONS BEFORE THE BUDGET SPEECH:

Eyewitness News Business Editor Bruce Whitfield gives his view of what's likely to emerge in Finance Minister Pravin Gordhan's 2012 Budget Speech on Wednesday the 22nd of February 2012.

THE ANALYSTS' EXPECTATIONS:

By: Saras Arjunan

There aren't expected to be many surprises when Finance Minister Pravin Gordhan presents his National Budget to the country in Parliament on Wednesday. However it will be a tough balancing act for the minister against the backdrop of the Eurozone crisis, which remains a threat to the stability of the global economy. Gordhan will also be mindful of a possible ratings downgrade with South Africa's outlook having being changed from stable to negative by global ratings agencies.

Chief Strategist at Investment Solutions Chris Hart thinks this will be the most critical budget since 1994. He says, “Gordhan must focus on poverty reduction and not poverty alleviation which creates a more conducive environment towards tackling unemployment”. He also says, “The minister must be careful about borrowing money to pay for expenses which is not healthy for the country”.

With the unemployment rate dropping marginally to 25%, government is under increasing pressure to create jobs and this should be among the main focuses of the budget.  In a survey done by the South African Institute of Relations earlier this year, it was revealed that government has created just over 600 000 jobs in the last decade, which makes the state’s plan to create five million jobs by 2020 bravely ambitious.

Following on the State of the Nation Address by President Jacob Zuma - education, social grants, service delivery and infrastructure development, are also expected to feature high on the agenda of the national budget. Analysts are also hoping Gordhan will provide some direction on the National Health Insurance and how it will be implemented and if it will be funded by the taxpayer.

The country will be looking for clarity on the funding of the controversial multi-billion rand tolling system in Gauteng. Roads agency Sanral has delayed the implementation of the tolls which was meant to go ahead earlier this month, following an outcry from business and the public who are tasked with paying for the system. Sanral is now looking at other funding options.

Law firm Edward Nathan Sonnenbergs, says not much relief is expected for the overburdened taxpayer, except for lower income earners. However, government may further clamp down on non-compliance. ENS says Gordhan will also re-iterate the importance of saving.

In an unprecedented move earlier this year, Gordhan intervened after finding large scale financial mismanagement in three of the country’s provinces, which includes Limpopo, the Free State and Gauteng. Limpopo, being the worst finds itself over R1bn in the red after wide spread corruption in provincial structures. The country will expect Gordhan to continue and enhance this tough stance in the fight against corruption.