Parliament - The Covid-19 pandemic will leave South Africa with a budget deficit of 15.7 percent of gross domestic product in the current financial year, along with a revenue shortfall of R300 billion and a bigger debt burden, Finance Minister Tito Mboweni said on Wednesday as he tabled an adjustment budget.
"Taken together the measures and adjustments we present translate into a consolidated budget deficit of R761.7 billion, or 15.7 per cent of GDP in 2020/21. This is compared to the deficit of R370.5 billion, or 6.8 percent of GDP projected in February," he said in a virtual address to the National Assembly."That means that we expect to miss our tax target for this year by over R300 billion," the minister said.
He said this placed an unconscionable burden on future generation and had to be addressed as a priority.Out of every tax rand, 21 cents would now go towards servicing debt.
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