Zondo Report Part 2/3 to Be Released This Week, Analysts Trim Deficit Forecasts

LOCAL NEWS

• The second part (of three) of the Zondo report into state capture is due to be published this week, set to provide more detail on how state organisations were purposefully weakened in the Zuma years to be looted.
  • The first section caused quite a stir on the corruption front, supporting Ramaphosa’s anti-corruption push. Zuma will also be facing the supreme court to avoid arms deal charges today
• Analysts forecast tax revenues to have beaten estimates by as much as R200bn in the Feb 23 budget, with the budget deficit coming in below Finmin Godongwana’s estimates at the November MTBPS owing to a large surplus in December. Absa forecasts a 5.8% deficit for 2021-22
• New leak emerges from within the President’s advisory committee with some in favour of a basic income grant, saying SA cannot grow itself out of poverty.
  • Meanwhile the other advisors argue that a permanent grant is unaffordable given the temporary nature of the tax windfall. Economists have said the only way to fund a BIG would be through large tax hikes set against an already overburdened tax base
• ANC has been urged to immediately retrench staff to restore the party’s financial health owing to a bloated workforce and “ghost workers” on the payroll – which are the biggest contributors to its financial woes.
  • The party is essentially broke, having failed to pay staff salaries since October. ANC Spox Pule Mabe has previously called for 50% of the ANC workforce to be retrenched

Data:

• 1200GMT: Dec Trade balance exp at 31.0bn vs 35.8bn prior