SA Budget: Broadly in Line with Expectations

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