Pretoria - South Africa collected R986.4 billion in revenue during the 2014/15 fiscal year, Finance Minister Nhlanhla Nene said on Wednesday, but did not give an estimate for expenditure as had been expected.
Nene told a news conference he would give a budget deficit forecast for 2014/15 in June. Treasury Director-General Lungisa Fuzile said the estimate for the deficit was likely to be narrower than the shortfall predicted in February.
In its budget review in February, the Treasury predicted a R152.4 billion shortfall for the year which ended on March 31, representing 3.9 percent of gross domestic product.
“The deficit for 2014/15 will certainly be lower than the February budget estimate,” Fuzile told a news conference.
“We won't be able to give any estimates now in the event of any economic events that may delay us from achieving our fiscal targets. If something does happen we will be able to revisit our expenditure and revenue plans,” he said.
Nene said in February he would raise income tax rates for the first time in 20 years to boost revenue, as Africa's most developed economy struggles to grow due to structural constraints including chronic power shortages.
The revenue collection outcome for 2014/15 compared with a R993.6 billion target set in February, Nene said.
Reuters