Cape Town - Finance Minister Nhlanhla Nene released his 2015 budget review on Wednesday. Here are some are some of the highlights:
BUDGET DEFICIT
Budget deficit estimate for the year 2015/16 revised marginally down to 3.8 percent of GDP from 3.9 percent forecast in February. The deficit is projected to narrow further to 3.3 percent in 2016/17 before reaching 3 percent in 2018/19.
GROWTH
Economic growth forecast for 2015 has been cut to 1.5 percent from 2.0 percent forecast in February. Growth expected to rise slightly to 1.7 percent in 2016, before rising more to 2.6 percent in 2017 and 2.8 pct in 2018.
INFLATION
Inflation is expected to average 4.8 percent in 2015, well within the central bank's 3-6 percent target band, before breaching the upper end at 6.2 percent in 2016. CPI falls back to 5.9 percent in 2017 and 5.8 in 2018.
EXCHANGE RATE
The rand is likely to remain susceptible to shifts in global capital flows, commodity price fluctuations, the borrowing levels of state-owned enterprises and domestic growth constraints.
CURRENT ACCOUNT
The current account deficit is expected to narrow to 4.1 percent in 2015 due to healthy export growth and improved terms of trade in the first half of 2015.
TAXES
Carbon tax expected to be implemented in 2016 may be delayed as further public consultations planned. An increase in Value-Added Tax (VAT) remains an option over the next three years, but no decision yet.
Reuters