MTBPS – Every additional Rand of revenue collected is one Rand less which we have to borrow.
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GUEST – Musa Manyathi Director for Tax at Deloitte Africa
Our public finances are significantly weaker. The main budget deficit has increased by R54.7 billion compared with the 2023 Budget estimates. This reflects lower revenue performance, higher wage bill costs and higher projected debt-service costs.
The main reasons for this are a sharp fall in corporate income tax, particularly from the mining sector, although personal income tax collection was better than forecast. The result of the shortfall is a substantial worsening in the main budget deficit in the current fiscal year.
We are now projecting a deficit of 4.9 per cent of GDP compared to our previous estimate of 4.0 percent. Under these circumstances, measures to stabilise public finances and reform the economy to generate higher growth are essential. We recognise that alongside these measures, our most effective way of funding government is through an efficient tax administration and by broadening the tax base.
SARS will continue its focus on enforcing compliance in areas such as debt collection, fraud prevention, curbing illicit trade, voluntary disclosures, and encouraging honest taxpayers to comply voluntarily. Every additional Rand of revenue collected is one Rand less which we have to borrow
Our public finances are significantly weaker. The main budget deficit has increased by R54.7 billion compared with the 2023 Budget estimates. This reflects lower revenue performance, higher wage bill costs and higher projected debt-service costs.
The main reasons for this are a sharp fall in corporate income tax, particularly from the mining sector, although personal income tax collection was better than forecast. The result of the shortfall is a substantial worsening in the main budget deficit in the current fiscal year.
We are now projecting a deficit of 4.9 per cent of GDP compared to our previous estimate of 4.0 percent. Under these circumstances, measures to stabilise public finances and reform the economy to generate higher growth are essential. We recognise that alongside these measures, our most effective way of funding government is through an efficient tax administration and by broadening the tax base.
SARS will continue its focus on enforcing compliance in areas such as debt collection, fraud prevention, curbing illicit trade, voluntary disclosures, and encouraging honest taxpayers to comply voluntarily. Every additional Rand of revenue collected is one Rand less which we have to borrow
