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Economy

South Africa's budget deficit seen wider than treasury forecasts

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The larger gap could point to a bigger consolidated fiscal shortfall than the 4.2 per cent of gross domestic product (GDP) the treasury projected for 2018-19.

Wednesday 01, May 2019

(Bloomberg) --South Africa’s budget deficit for the most recent fiscal year could be worse than the government had forecast.

According to the National Treasury the total shortfall for the year that ended on 31 March was ZAR 232.9 billion ($16.3 billion), exceeding the government’s February projections of a ZAR 224.5 billion gap for the main budget and ZAR 210.2 billion for the consolidated budget.

The consolidated figure includes the main budget framework as well as self-financed spending by provinces, social security funds and public entities. The tax agency said on 1 April that collections did not meet their target.

This may be compounded by economic growth coming in slower than what the government estimated as power cuts weigh on output.

TAGS : Budget deficit , South African Rand, President Cyril Ramaphosa

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