South Africa’s 9-month budget gap at 79% of full-year target

By bne IntelliNews January 30, 2015

South Africa’s main budget deficit for the first nine months of the 2014/15 fiscal year, which ends on March 31, expanded by 11.3% y/y to ZAR142.1bn ($12.2bn) and reached 79.1% of the revised full-year target, Treasury data showed.

The government’s revenues grew 7.3% y/y to ZAR687.7bn in the nine months to end-December, reaching 71.9% of the full-year target, while expenditure rose 8% y/y to ZAR829.8bn, fulfilling 73% of the full-year plan.

In December alone, revenue increased 3% y/y to ZAR123bn, whereas expenditure surged 13.8% y/y to ZAR100.4bn.

South Africa targets a budget deficit equal to 4.1% of GDP for the current fiscal year, aiming to cut it to 3.6% in 2015/16, 2.6% in 2016/17 and 2.5% in 2017/18.

ZARmn April-Dec 2014 April-Dec 2013 y/y change Revised full-year target % of target
Revenue 687 706.2 640 677.5 7.3% 956 628.6 71.9%
Expenditure 829 803.5 768 322.8 8.0% 1 136 339.8 73.0%
Main budget balance -142 097.3 -127 645.3 11.3% -179 711.2 79.1%
Financing of the net borrowing requirement          
Domestic short-term loans (net)  44 167.2 25 840.2 70.9% 10 000.0 441.7%
Domestic long-term loans (net) 116 616.1 130 055.0 -10.3% 153 926.0 75.8%
Foreign loans (net)  8 927.7 1 063.5 739.5% 8 263.0 108.0%
Change in cash and other balances (- increase)  -27 613.8 -29 313.4 -5.8% 7 522.2 -367.1%
Total financing (net) 142 097.2 127 645.3 11.3% 179 711.2 79.1%
Source: National Treasury          

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