Report

MTBPS proposes weak consolidation measures deferred to 2020 budget

- Growth will fall to 0.5% in 2019 and will not accelerate to 1.7% until 2022
- Consolidated budget deficit will rise to 5.9% of GDP in 2019/20 against 4.5% target
- Budget deficit will peak next year at 6.5% of GDP
- Spending will rise by ZAR 23bn this year mainly due to Eskom
- Revenue shortfall could come up to ZAR 52.3bn
- Gross loan debt will exceed February estimate by 4.6pps and will soar to 71.3% of GDP in 2022/23
- Fiscal slippage will be addressed via wage bill, some tax measures are considered
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