{"id":55893,"date":"2023-11-01T17:10:20","date_gmt":"2023-11-01T17:10:20","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn"},"modified":"2023-11-01T17:41:02","modified_gmt":"2023-11-01T17:41:02","slug":"government-cuts-spending-as-revenue-drops-by-r56-8bn","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn","title":{"rendered":"Government cuts spending as revenue drops by R56.8bn"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The government has revised its tax revenue collection targets down by more than R56bn for the 2023\/2024 financial year as the economy continues to underperform, forcing it to cut spending.<\/p>\n

This is according to figures contained in the medium-termbudgetpolicystatement tabled in parliament by finance minister Enoch Godongwana on Wednesday.Godongwana told MPs the tax revenue estimate he presented in his February budget has been revised down by R56.8bn as revenue streams dried up due to poor economic performance. This has been compounded by Eskom\u2019s rolling blackouts, Transnet\u2019s freight rail crisis and other logistical problems in the economy.Key issues affecting the South African Revenue Service\u2019s (SARS) ability to raise the projected revenue included plummeting corporate tax and higher value-added tax (VAT) refunds, among other things.<\/p>\n

Godongwana said the \u201cwindfall tax\u201d the country has been enjoying because of the recent years of commodity boom has \u201ccome to an end\u201d.<\/p>\n

\u201cMining provisional corporate tax collections fell by R24.6bn or 55% relative to the same period in 2022\/2023.<\/p>\n

\u201cLower commodity prices, weaker global growth, increased incidence of power cuts and logistical constraints have weighed heavily on the sector,\u201d said Godongwana.<\/p>\n

SARS has had to pay out more than expected VAT refunds, including those related to households and businesses investing in alternative energy sources as they move away from the unreliable Eskom grid.<\/p>\n

Mining companies have so far claimed the largest portion of VAT refunds (R5.7bn), followed by the manufacturing sector (R5bn) and electricity (R3.5bn).<\/p>\n

\u201cVAT refund repayments are R21.5bn higher relative to the same period last year due to stronger than expected exports, increased investments in embedded generation and higher costs of doing business, including the use of more expensive road rather than rail transport.<\/p>\n

\u201cStronger import VAT collections partially offset robust VAT refund payments.<\/p>\n

\u201cA sustained recovery in earnings and higher bonus payments have benefited personal income tax collections, with employees\u2019 tax from the finance sector driving the strong year-to-date growth.\u201dAs a result of dwindling tax revenue, Godongwana said the National Treasury will cut budget allocations to government departments by R85bn in the next two years.<\/p>\n

In this financial year, conditional grants to municipalities, which they use to fund bulk infrastructure projects, have been immediately reduced by R3.4bn.<\/p>\n

Provincial direct conditional grants have also been slashed by R6.2bn.<\/p>\n

However, Godognwana managed to allocate R23bn to \u201clabour-intensive departments\u201d such as health, the security services and education, to help them implement the 2023 public sector wage agreement.<\/p>\n

The agreement will see the salaries of civil servants rise by 7.5% in the 2023\/2024 financial year.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The government has revised its tax revenue collection targets down by more than R56bn for the 2023\/2024 financial year as the economy continues to underperform, forcing it to cut spending. This is according to figures contained in the medium-termbudgetpolicystatement tabled in parliament by finance minister Enoch Godongwana on Wednesday.Godongwana told MPs the […]<\/p>\n","protected":false},"author":84,"featured_media":55891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,12],"tags":[274,315,275],"class_list":["post-55893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nGovernment cuts spending as revenue drops by R56.8bn - South Africa<\/title>\n<meta name=\"description\" content=\"The government has revised its tax revenue collection targets down by more than R56bn for the 2023\/2024 financial year a ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government cuts spending as revenue drops by R56.8bn\" \/>\n<meta property=\"og:description\" content=\"The government has revised its tax revenue collection targets down by more than R56bn for the 2023\/2024 financial year a ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T17:10:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-01T17:41:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/11\/sm_1698847606.090032.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Government cuts spending as revenue drops by R56.8bn\",\"datePublished\":\"2023-11-01T17:10:20+00:00\",\"dateModified\":\"2023-11-01T17:41:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\"},\"wordCount\":450,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/11\/sm_1698847606.090032.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"head lines\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-cuts-spending-as-revenue-drops-by-r56-8bn\",\"name\":\"Government cuts spending as revenue drops by R56.8bn - 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