South Africa Will Borrow More, Spends Less to Tackle Revenue Shortfall

South Africa’s National Treasury said it will ramp up borrowing, trim spending and raise taxes to compensate for a revenue shortfall, spiraling debt-servicing costs and a higher state wage bill.

The government expects to collect 56.8 billion rand ($3.03 billion) less tax than it anticipated at the time of the February budget, largely because energy shortages and logistics constraints curtailed mining companies’ profitability, the Treasury said in its mid-term budget policy statement.