Economics
A $2.9 Billion Tax Hole Looms Over South Africa's Finance Minister
- Gigaba to outline policy changes in first mid-term budget
- Revenue gap likely to reach 40 billion rand, survey shows
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South African Finance Minister Malusi Gigaba faces a gaping budget hole -- and will have to consider cutting spending, raising taxes and selling state assets if he wants to avoid further ratings downgrades.
The economy he oversees is hampered by a deteriorating growth outlook, partly stemming from a battle for control of the ruling party that’s stoked political uncertainty and deterred hiring and investment. Gigaba will outline policy changes in his first mid-term budget speech on Wednesday at a time when economists estimate he is confronting a 40 billion-rand ($2.9 billion) revenue gap.