South Africa’s 2019/20 tax revenues could be “significantly lower” than budgeted for and it may need to borrow more than planned, Finance Minister Tito Mboweni said Tuesday.
He cited the cost of support for troubled power utility Eskom as a major contributing factor.
Mboweni was addressing parliament on a special appropriation bill that will make an extra R59 billion available to Eskom, which has more than R400 billion of debt and is struggling to supply power to households and businesses.
The extra R59 billion is on top of the R69 billion announced in his Budget Speech.
R26 billion will be allocated in the fiscal year ending March 2020 and R33 billion allocated in the fiscal year ending March 2021.
Mboweni said the lower tax receipts
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