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Budget deficit narrows to 4.3% of gross domestic product
Budget deficit narrows to 4.3% of gross domestic product

Budget deficit narrows to 4.3% of gross domestic product

ECONOMIC NEWS - May 8th 2015, 11:23

The budget deficit for 2014-15 has been reduced to 4.3% of gross domestic product due to higher than expected tax revenue collections and lower government expenditure, the Treasury said in a statement on Thursday. 

This compares to the 4.7% deficit figure included in the budget released in February and means that the government will not have to borrow as much as anticipated. The borrowing requirement for 2015-16 is now forecast at R167.8bn compared to a budget estimate of R180.9bn.

"In total, the budget deficit is estimated to narrow by R15bn in 2014-15," the Treasury said.

The revisions of the budget deficit figure came after departments closed their accounting records for the 2014-15 fiscal year, which revealed their actual expenditure to end March.

The Department of Co-operative Government and Traditional Affairs under spent by R4bn and Social Development by R800m.

The Treasury statement noted that gross revenue collections for last year were R986.3bn, or R7.3bn higher than the 2015 budget estimate of R979bn.

Non-tax revenue was R2.2bn higher.

Non-interest spending amounted to R1.02-trillion, reflecting under spending of R3.3bn. Lower than expected interest payments contributed R0.2bn to total under spending of R3.5bn.From DFM Publishers (Pty) Ltd 

Read more about: tax | south africa | economy

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