SOUTH AFRICA’s consolidated budget deficit is expected to widen markedly this year, a Reuters poll found, with its National Treasury struggling to squeeze it back to levels it anticipated before the coronavirus pandemic disrupted economic activity.
The poll, taken over the past week, showed a median of 21 economists expect the government budget deficit for this year to widen to a record 14% of gross domestic product, from an official estimate of 6.3% of GDP in the last financial year.
Finance Minister Tito Mboweni is due to deliver an emergency budget on Wednesday in response to the COVID-19 crisis.
“The focus in this budget will be partly on the magnitude of the deficits and, in turn, funding requirement, and perhaps even more importantly whether government can credibly project debt stabilisation in the medium-term,” said Standard Bank’s Elna Moolman.
Forecasts in the poll for the budget deficit over the next two
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
