Budget
Slightly wider 2014/15 budget deficit of 4.1% of GDP expected – MTBPS
South Africa expects a slightly wider budget deficit of 4.1 percent of GDP for 2014/15 from the 4 percent seen in February, but will rein in spending and raise taxes to get the gap down to 2.5 percent in three years, the Treasury said on Wednesday.
"The budget deficit is high, debt levels have approached the limits of sustainability," it said.
The government would reduce its spending ceiling and raise tax revenue over the next two years, stabilising debt at nearly 46 percent of GDP by 2017/18, before starting to decline.
The government would introduce proposals in its 2015 Budget next February to generate at least 27 billion rand more in revenue over the next two years and would freeze new jobs in the public sector while ensuring that support for state firms did not widen the deficit.
(1 US dollar = 11.0075 South African rand)