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Posted: 2025-05-21 17:45:31 UTC
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
Status
Last Updated
2025-05-21 17:45:49 UTC
Verified By
Rollup News
South Africa's third 2025 budget was released, addressing the economic fallout from coalition disagreements. The budget scraps a planned VAT hike, leading to a significant revenue shortfall. Consequently, the deficit and debt levels are projected to increase, while economic growth forecasts have been lowered. Government spending is set to decrease, and potential adjustments to the central bank's inflation target have stirred market activity.
Planned VAT hike cancelled, creating a 61.9 billion rand revenue gap
Deficit rises to 4.8% of GDP
Debt to reach 77.4% of GDP next year
Growth forecast reduced from 1.9% to 1.4%
Government spending to decrease by 69.4 billion rand over three years
Coalition disagreements leading to budget collapses
Revenue shortfall due to VAT hike cancellation
Rising deficit and debt levels
Decreased economic growth forecast
High unemployment rates