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.
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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