IEJ POLICY BRIEF - MEDIUM-TERM BUDGET POLICY STATEMENT - IS SOUTH AFRICA

REVENUE SHORTFALL 2.1 THE SCALE OF THE POTENTIAL further shortfall of around R32.6 billion for the remainder REVENUE SHORTFALL IN of the fiscal year. [...] Similarly to the revenue shortfall, the projected expenditure The majority of this shortfall, is therefore, the overrun for 2023/24, and its scale, is not unprecedented. [...] Without changes to National Treasury the central goal of fiscal policy is to in the fiscal trajectory, we estimate that the main budget “stabilise the national debt-to-GDP ratio by closing the deficit, as a share of GDP, will reach -6.29% in 2023/24, budget deficit”21. [...] bond holdings in the first half of the year alone (having This is in line with the average of 10% in the past decade. [...] Through appropriate to undertake a thorough spending review various mechanisms the government influences the flow and assess genuine needs and how best the fiscus of investment and credit in the economy.