Government Spending Expected To Reach R2.4 Trillion This Year

Government spending is expected to reach R2.4 trillion this year, growing at a rate of 5.6 over the next three years.

Additional spending requirements came from an extension to the Social Relief of Distress Grant to March next year, above inflation public service wage increases, frontline services, social grants increase and infrastructure among others.

Finance Minister Enoch Godongwana says the budget deficit, which is the difference between tax collections and government spending, is projected to increase at 5 of Gross Domestic Product this year.

He says an increased budget allocation for SARS will help boost revenue .

" Broadening the tax base and improving the administrative efficiency of the South African Revenue Service, allows us over time, to spread the tax burden more evenly and equitably. With this in mind, SARS is allocated R3.5 billion in the current financial year and an additional R4 billion over the medium term. By the end of February this year, SARS reported a significant increase in undisputed debt. This means billions of Rands are owed to the State."