SARAH BULLEN, Cape Town | Friday 1.25pm
THE government raised total revenue of R17,752-billion in September, the Department of Finance announced on Thursday.
This puts the government above target and presents a very encouraging picture of the fiscal position, economists said. The figure was 13,5% higher than in September 1998 and was made up of total inland revenue of R16,401-billion and customs and excise receipts of R1,351-billion, the department said in a statement.
Total revenue for the first six months of the fiscal year reached R88,812-billion, an increase of 8,2% on the same period last year. Total exchequer requisitions for September were R17,840-billion, 6,6% more than in the same month last year, the department said. For the first six months of the fiscal year total exchequer requisitions amounted to R109,993-billion, an increase of 6,8% over the same period last year.
ING Barings chief economist Kristina Quattek said it appears that the strong government revenue performance mostly stems from impressive income tax collection. Other taxes like donation tax, marketable securities tax, mining leases and ownership and interest and dividends also show impressive growth for this period. An amount of R576-million received from the demutualisation levy also boosted income revenue for the government in April-September.
“Like the last fiscal year, the impressive revenue collection is putting the estimated 3,5% budget deficit for 1999/00 well within reach,” Quattek said.