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SA Budget: Broadly in Line with Expectations

SOUTH AFRICA

Budget Headlines:

  • TO COLLECT 99.6B RAND MORE IN 2020-21 THAN FORECAST
  • DOMESTIC BOND ISSUANCE FALLS TO 380B RAND FROM 518.5B
  • SCRAPS PLAN TO RAISE 40B RAND EXTRA IN TAXES
  • LIFTS INCOME-TAX BRACKETS MORE THAN INFLATION
  • TO DRAW DOWN CASH BALANCES TO HELP FUND DEFICIT
  • DEBT SEEN PEAKING AT 88.9%/GDP VS 95.3% OCT. EST.
  • TREASURY SEES 7.2% GDP DECLINE IN 2020
  • SEES GDP EXPANDING 3.3% IN 2021, 2.2% IN '22- BUDGET GAP AT 9.3%/GDP IN 2021
  • 22, 7.3% IN 22-23- 2020-21 BUDGET DEFICIT SEEN AT 14%/GDP VS 15.7% EST.
  • TO GIVE LAND BANK 7 BILLION RAND OVER 3 YEARS
  • 2021-22 BORROWING REQUIREMENT FALLS TO 547.9B RAND
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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