SA’s budget deficit comes in lower at 5.2%

South Africa’s main budget deficit for the 2022 fiscal year was smaller than the government’s estimate after better-than-expected revenue collection and spending that undershot projections.South Africa&#039;s economy recorded a shortfall of 5.2% of gross domestic product on its main budget — which excludes total spending by provinces, social security funds and some state entities — for the year through March 2022, the National Treasury said in an emailed response to questions on Thursday. The monthly budget data showed a shortfall of R325.7 billion for the fiscal year.That compares with a revised estimate for a gap of 5.5% of GDP that Finance Minister Enoch Godongwana presented on 23 February and is improvement from the 9.9% of GDP recorded in the prior fiscal year, when the coronavirus pandemic wrought havoc on the economy.While the Treasury cautioned that the outcome is preliminary, the better-than-expected figure means the deficit on the consolidated budget could be less than the budget projection of 5.7% of GDP.The smaller gap comes as revenue was buoyed by higher corporate income, thanks to a rally in commodities, and value-added tax. Income exceeded estimates by R12.2 billion, while spending undershot forecasts by R9 billion, the Treasury said.The smaller shortfall bolsters the Treasury’s chances of achieving a primary budget surplus — where revenue exceeds non-interest spending — in the 2024 fiscal year. That will bring its multi-year fiscal consolidation efforts to a close and allow the government to “reconsider the funding of South Africa’s priorities” in a more stable environment, it has said previously. -Fin24

SA’s budget deficit comes in lower at 5.2%

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Namibian Sun 2026-09-10

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SA’s budget deficit comes in lower at 5.2%

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Namibian Sun 2026-09-10

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