The budget deficit for the 2018/2019 fiscal year could be worse than the figure announced by finance minister Tito Mboweni in February, highlighting the challenges faced by new SA Revenue Service (Sars)  commissioner Edward Kieswetter. Kieswetter assumed office as the head of the revenue service on Wednesday. He was a Sars deputy commissioner during the tax agency’s heyday when current public enterprises minister Pravin Gordhan ran it. The total shortfall for the year that ended on March 31 was R232.9bn, National Treasury said on Tuesday in its monthly budget update. With March being the final month of the fiscal year, this outcome takes the 2018/2019 main budget deficit to R238.5bn, R14bn wider than expected due to revenue underperformance. The larger gap could point to a bigger consolidated fiscal shortfall of 4.8% of GDP compared with the 4.2% Treasury projected for 2018-19. In April, Sars, whose capacity was torn down during the administration of former commissioner Tom Moy...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.