PwC warns fiscus revenue shortfall of R18bn likely
The firm says the Treasury’s growth forecast is too optimistic
26 March 2025 - 05:00
The fiscus is likely to suffer a potential revenue shortfall of R18bn in 2025/26 because the National Treasury has overestimated GDP growth in the budget tabled in parliament recently by finance minister Enoch Godongwana.
Such a shortfall would require the Treasury to look at further tax increases or stringent expenditure cuts if it was to remain committed to its fiscal consolidation and debt reduction strategy. It would also probably mean the implementation of the 0.5 percentage point VAT increase in 2026 that Godongwana has said would not be necessary if there was sufficient economic growth. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.