By Colleen Goko
South Africa will need to slash spending if its tax agency does not meet its revenue collection target this year, Finance Minister Enoch Godongwana said on Thursday, as the government focuses on keeping rising debt under control.
Godongwana was speaking after making only minor adjustments to the government’s spending plans and deficit projections in a third budget presented to lawmakers on Wednesday.
His two previous attempts were scuppered by disagreements within the ruling coalition – chiefly over now abandoned plans to raise value-added tax – that had rattled investors’ confidence in Africa’s most developed economy.
Speaking to Reuters in an online interview, Godongwana said the government did not expect to overshoot on spending.
He said if the South African Revenue Service raises more than its target of over 1.9 trillion rand ($105 billion) in the fiscal year that ends in March 2026, there will be no need for 20 billion rand in
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
