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.
15.7% of budget deficit is unimaginable number. Most probably health, education, infrastructure will see budget cuts.