Median Forecast for 2022/23 Deficit Falls to 5.7% vs 6.0% MTBPS Forecast

LOCAL NEWS

• Median forecast for 2022/23 budget deficit is 5.7% of GDP according to Bloomberg vs 6% estimate at the November MTBPS. Two thirds of the survey expect SA to meet its primary budget surplus objectives by 2025.
  • Govt could also reduce issuance, unless it wants to keep buffers in place to account for looming non-interest spending demands. 66% of the survey see a basic income grant being implemented before 2024 – BusinessTech
• Tax expert says a conservative approach is expected from the Treasury today, noting a low likelihood of personal income of VAT taxes today. Says, however, that there’s a possibility of inflationary increases in sin taxes and fuel levies – SABC
• Eskom said to consider selling distribution assets as prospects of the government taking over about half of its 392 billion rand ($26 billion) obligations dim, people with knowledge of the matter said.
  • Eskom said that it needs to cut its borrowings to about R200bn to be sustainable. Says it will also step up efforts to spur delinquent local authorities, which owe the utility about R41bn - bbg
• Standing Committee on Public appropriations (SCOPA) says the financial health of SOEs Prasa, the Post Office and Land Bank are of great concern ahead of the budget. Says R7bn allocated to the Land Bank has yet to be transferred, and the post office is how many receive grants where there are no banks nearby.
  • Sanral says it will hike its toll tariff by 5% to adjust for inflation as it needs to improve road infrastructure and service its debt – EWN, BusinessDay
• EFF says it will march to parliament ahead of today’s budget speech to oppose IMF and World Bank loans – SABC news

Data/Events:

• 1200GMT: SA Budget