TUESDAY, 5.00PM:
CENTRAL government spending in the year to March 1996 was up 13,5% over the previous year, according to figures released by Central Statistical Services on Tuesday.
Expenditure from the State Revenue Account amounted to R167 269,4-million in the 1995/96 financial year, ending March 31, 1996. This is 13,5% higher than the R147 329,2-million spent during the previous financial year.
The current increase in expenditure for the 1995/96 financial year is “8,5% bigger than outlined in the main budget”, which threatens government’s aim to reduce the budget deficit to 3% of GDP by 2000-2001. But this discrepancy will later be adjusted by Parliament during the budget review, says Jan Botha, Deputy-director of the Central Statistical Services.
Botha says that the extra 13,5% expenditure has been funded by factors such as fiscal drag, or inflation, relative to increased taxes (and collection capabilities) , which includes increases in revenues from services such as customs and excise.
“Customs and excise (revenues) have risen, and there is a higher percentage of taxes – not much, but some,” he says.
Botha also says that nett expenditure is influenced by standing and statutory appropriations, such as the gold and foreign exchange contingency reserve account administered by the Reserve Bank, to cover currency exchange fluctuations and losses.
Due to the reallocation of certain functions — for example, social security and welfare services — from the central to provincial governments during the 1995/96 financial year, the economic and functional expenditure is not comparable over the two years.
Figures in today’s report include:
R19 588,8-million (11,7%) of the total expenditure was spent on remuneration of employees, R7 038,5-million (4,2%) on other goods and services, and R6 223,5-million (3,7%) was paid as subsidies to businesses.
R249,8-million (0,15%) was transferred to foreign countries and international institutions. *
R3 995,5-million (2,4%) was spent on capital expenditure, R3 799,7-million (2,2%) was spent on capital transfers and R148,8-million (0,1%) was classified as purchases of shares and loans.
Interest on loans amounted to R29 250,5-million (17,5%) of the total expenditure.