Economics
South Africa’s Widening Budget Gap May Drive Up Tax Targets
- Deficit forecast at 11% of GDP in fiscal 2021-22, survey shows
- State plans to raise extra 40 billion rand in tax over 4 years
This article is for subscribers only.
South Africa may be forced to revise its tax increase targets as its budget shortfall is set to breach wartime levels for a second consecutive year.
The budget deficit will reach 11% of gross domestic product in the fiscal year through March 2022, according to the median estimate of 13 economists in a Bloomberg survey. That compares with the government’s estimate of 10.1% published in October’s medium-term budget policy statement.