Budget Debt Economy Government South Africa

South Africa Sees 2020-21 Budget Deficit at 15.7% of GDP

South Africa’s consolidated budget deficit will widen to 15.7% of gross domestic product this year, more than double the 6.8% shortfall that was projected in February, according to a special adjustment budget presented to lawmakers by Finance Minister Tito Mboweni on Wednesday.

Government debt will surge to 81.8% of GDP in the 12 months through March 2021 and continue rising, to peak at 87.4% of GDP in 2023-24, Mboweni said. Steps will be taken to curb the growth in obligations, he said.

Also read: New Development Bank provides South Africa with US$1B COVID-19 loan

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