OWN CORRESPONDENT, Johannesburg | Friday 6.00pm
FINANCE department director-general Maria Ramos said the department expects a marginal decline in its 1999/2000 budget deficit after its revenue collection came in way above expectations during the fiscal year.
Ramos said that the department collected R200,3-billion during the fiscal year. The figure exceeds the estimate Finance Minister Trevor Manuel made in February of R198,94-billion, which was already up from an initial R193,89-billion estimate.
”Obviously if revenue is R1,3-billion more than we anticipated and expenditure is within the number that we published then it will have a small, but positive impact on the [budget] deficit,” Ramos said. The government has forecast a budget deficit of 2,4% of the gross domestic product (GDP) for the 1999/2000 financial year and is in the process of closing off its books.
The South African Revenue Services collected R184,4-billion in the 1998/1999 financial year and forecasts revenue for the current 2000/01 fiscal year at R212-billion.
Ramos said the government is on track to achieve the R216-billion target on the expenditure side, set out in the budget. Economists welcomed the numbers and said they expect a positive impact on the budget deficit. The continued improvement in tax revenue collection is seen broadening the tax base, raising hopes of future tax cuts.– Reuters