Finance Minister Pravin Gordhan and his team at the national treasury are optimistic they will defeat South Africa’s job crisis. Youth employment nose-dived by 13.6% last year, leaving almost half of young South Africans without work.

Delivering the budget speech to parliament, Gordhan identified putting young people in jobs as the state’s top priority as a way of improving economic growth and reducing poverty.

Here’s how the 2010 Budget Speech affects you:

Job Creation

“Jobs for young people” could create another 500 000 jobs for people in the 18-24 age group over three years. The unemployment rate amongst South Africans between the age of 18 and 24 currently stands at 48.2%, which is nearly double the national average of 24.3%. Three-quarters of all unemployed people are under the age of 35. Minister Gordhan blamed the problem on employers’ reluctance to hire inexperienced people, the lack of skills in SA school leavers and trade unions demands for high entry-level wages.

Education Spending

Meanwhile, Education spending –the largest item on the budget- was allocated a total of R165 billion. Higher education institutions will get a R1 billion boost over the next 3 years.

Grants

Almost 14 million South Africans are currently receiving social grants. The recession has forced a number of people tout of work, causing unemployment claims to nearly double in the space of year. This year government has allocated R89 billion.

Sin Taxes- That’s the hard stuff!

The bad news is that fuel goes up 25.5 cents a litre, a packet of cigarettes will cost R1.24 more, while a bottle of wine and beer will increase by 25 cents and 6.5 cents respectively. The hard stuff (that’s your shots of tequila and whiskey) however will cost R2.22 more!

You got it on www.studentvillage.co.za! What is your take on the 2010 budget speech?