South Africa's government revised its budget deficit forecast to 14 percent of GDP in the 2020/21 fiscal year from an earlier estimate of 15.7 percent in October and compared to 6.4 percent in 2019, mainly due to better-than-expected tax collections. Still, it would be the largest shortfall ever recorded, as the Covid-19 pandemic and strict lockdown measures hit severely the country's fragile economy. Meantime, government debt should jump to 80.3 percent of GDP, compared to October'estimate of 81.8 percent and 63.5 percent last year. The economy is seen contracting 7.2% in 2020 from an earlier estimate of 7.8%, before gradually recovering by 3.3% in 2021. Finance Minister Tito Mboweni also announced that the corporate income tax rate will be lowered to 27% for companies with years of assessment starting on or after April 1st 2022, which will be the first reduction since 2008. source: National Treasury, South Africa
Government Budget in South Africa averaged -3.43 percent of GDP from 1989 until 2019, reaching an all time high of 1 percent of GDP in 2007 and a record low of -7.40 percent of GDP in 1992. This page provides - South Africa Government Budget - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Government Budget - values, historical data and charts - was last updated on May of 2021.
Government Budget in South Africa is expected to reach -13.70 percent of GDP by the end of 2021, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Africa Government Budget is projected to trend around -12.00 percent of GDP in 2022, according to our econometric models.