SA: BUDGET DEFICIT THE BIGGEST IN TWO YEARS

[Nat Quinn]

SA: BUDGET DEFICIT THE BIGGEST IN TWO YEARS

 

The National Treasury’s most recent data give the clearest indication yet that state finances are in a bad state.

According to this, the budget deficit rose from 5.7% in November to 6% in December.

According to information from the department, this indicates that this was the largest deficit in more than two years.

On the eve of the finance minister, Enoch Godongwana’s budget speech, economists agree that it will put more pressure on the minister to pass the budget – and that too in an election year.

In November, Reserve Bank Governor Lesetja Kganyago told Bloomberg that the central bank was in discussions with the Treasury to transfer reserves to finance the government’s growing budget deficit.

 

source:SA: Begrotingstekort die grootste in twee jaar – Pretoria FM

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