Economist Sees ~R216bn Budget Windfall; Research Group Warns of Fiscal Cliff in 2021

LOCAL NEWS

• Momentum Economists says revenue shortfall could be roughly R216bn less than the Treasury's Feb 2020 estimate, diminishing the budget deficit by ~R90bn due to higher4Q20 collections.
  • Warns however, that although it remans positive from a debt reduction standpoint, it may create difficulties for govt's austerity push
• Fiscal cliff study group warns the fiscal cliff (public ages, grants and debt service costs > Govt revenue) is expected to be reached in the current fiscal year to 31 March 2021 - escalating the risk of eventually having to approach the IMF
• Zondo Commission approaches ConCourt to seek a contempt of court order against ex-President Zuma, calling for a 2-year jail sentence
• 0930GMT unemployment data exp at 31.5% vs 30.8%: Although local economists speculate this may print clever to 32%