Tthe tax base is not dwindling; it is growing above the rate of inflation, Budget shortfall notwithstanding,says the writer. (Image: Steve Buissinne / Pixabay) - Economic growth is projected at 0.5% for 2019, down from 1.5% in March, 2019, creeping to 1.7% in 2022
- Consolidated government spending will total R6.3-trillion over the next three years
- Expected tax revenue is R1.37-trillion for 2019/20, R53-billion, or 4% less than expected.
- The consolidated Budget deficit is projected at 5.9% of GDP in the current year, averaging 6.2% of GDP over the next three years.
- Debt‐service costs, wages and financial support for SOE’s are growing at 13.7% annually, double that of health, community development and economic development
- In 2019/20 national debt exceeded R3-trillion. It is expected to rise to R4.5-trillion in the next three years.
- As a proportion of South Africa’s GDP, gross debt rises from 56.7% in 2018/19, 60.8% in the current year to 71.3% in 2022/23.
- The public sector wage bill accounts for 46% of tax revenue in 2019/20
- The total revenue shortfall for 2019/20 will amount to R52.5-billion