May 12, 2022 11:51 GMT
- SOUTH AFRICA 2021-22 MAIN BUDGET GAP 5.2% OF GDP, EST. WAS 5.5%
- South Africa’s main budget deficit for the 2022 fiscal year was smaller than the government’s estimate after better-than-expected revenue collection and spending that undershot projections.
- is improvement from the 9.9% of GDP recorded in the prior fiscal year, when the coronavirus pandemic wrought havoc on the economy.
- While the Treasury cautioned that the outcome is preliminary, the better-than-expected figure means the deficit on the consolidated budget could be less than the budget projection of 5.7% of GDP.
- The smaller gap comes as revenue was buoyed by higher corporate income, thanks to a rally in commodities, and value-added tax. Income exceeded estimates by 12.2 billion rand, while spending undershot forecasts by 9 billion rand, the Treasury said.
- The smaller shortfall bolsters the Treasury’s chances of achieving a primary budget surplus -- where revenue exceeds non-interest spending -- in the 2024 fiscal year. That’ll bring its multi-year fiscal consolidation efforts to a close and allow the government to “reconsider the funding of South Africa’s priorities” in a more stable environment, it has said previously.