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Budget deficit may be wider than forecast

Shortfall of R233bn for year to March – Treasury.

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

The total shortfall for the year ended March 31 was R232.9 billion ($16.3 billion), National Treasury said in its monthly budget update on Tuesday.

That exceeds government’s February projections of a R224.5 billion gap for the main budget and R210.2 billion for the consolidated budget.

Source: National Treasury, Bloomberg

The consolidated figure includes the main budget framework as well as self-financed spending by provinces, social security funds and public entities. The South African Revenue Service (Sars) said on April 1 that collections didn’t meet their target.

The larger gap could point to a bigger consolidated fiscal shortfall than the 4.2% of GDP Treasury projected for 2018-19. This may be compounded by economic growth coming in slower than government estimated as power cuts weigh on output.

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All self inflicted due to anti growth policies. When will we ever learn?

But of course they will keep on borrowing.
A debt brake would have been no bad thing but unpalatable to patronage parasites

Finally someone dares to whisper what most of Moneyweb knows and the dreaded % of GDP not mentioned. I was interested to see how Eskom’s “debt” seemed to have been adjusted from a well-publicied R450bn a few months ago to a more palatable R250bn recently. Magic or reality (or lies)?

Again, MoneyWeb, tell us what the outcome will be; ZAR plummet in value and interest rates to 50% odd then IMF begging bowl, asset sale to China, theft of pensions, wealth tax, nationalisation?

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