BUDGET 2023: First primary surplus in 15 years, but Eskom debt bailout is dragging down the national balance sheet

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Amid an impossible storm of rising interest rates, steep inflation and a cost-of-living crisis, Finance Minister Enoch Godongwana has submitted a Budget with a primary surplus – a surplus of income over expenditure excluding interest payments on ...

ncome tax collection tailwinds in 2022 have actually allowed South Africa to move closer to a balancedbudget, which means that government revenues should be sufficient to cover its non-interest expenditures.n such a setting it is theoretically easier for the government to fund itself in the event that every bondholder simply reinvests all coupons they receive. However, sheproblems can easily arise where interest costs escalate enormously.

There has been a substantial improvement in tax compliance, which contributed R1.8-trillion or 84% revenue to the government’s coffers. As Nazrien Kader, head of tax at Old Mutual Group,if there is any upside to the load shedding crisis, it is in the not-insignificant proportion of tax stealthily collected – almost a third for every R1 spent on fuel in the form of the general fuel levy and the Road Accident Fund levy – as businesses and households scramble to run generators to keep going”.

In line with this, government spending on infrastructure is estimated at R903-billion over the next three years, of which R302-billion will go towards state-owned entities, and R3.7-billion will go towards approved projects to improve municipal water infrastructure, with implementation on pause until the 2023 Appropriations Bill is enacted.

 

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More to steal, Mr. black commie.

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BUDGET LIVE | Debt service costs to reach almost R400 billion in 2025 | BusinessWATCH LIVE | Finance Minister Enoch Godongwana presents the 2023 Budget. Follow it live on News24 Vokken budget is so stupid soos die ding se bril op daai plat neus 👃🏿
Source: News24 - 🏆 4. / 80 Read more »