Cape Town - Finance Minister Pravin Gordhan
unveiled his 2012/13 budget on Wednesday. Following are highlights: Budget deficit
Budget deficit projected at 4.6% of gross domestic product (GDP) for the fiscal year to March 2013, below economists’ expectations of 5.4%. The deficit is projected to fall to 3% by 2014/15.
Growth forecast trimmed to 2.7% for 2012 GDP, from 3.4% expected in October last year. GDP is projected to grow 3.6% and 4.2% in 2013 and 2014. Inflation
Inflation to average 6.2% in 2012, above the 3-6% target range, before falling back to 5.3% in 2013 and 5.1% in 2014. Current account
Current account deficit to widen to 4.3% of GDP in 2012, from 3.3% in 2011. Expected to expand to 4.5% in 2013 before easing to 4.4% in 2014. Debt
Total net government debt to hit R1.35 trillion ($175.5bn), or 36% of GDP, by the end of 2012/2013, rising to R1.54 trillion, or 38.5% of GDP, by the end of 2014/2015.
Net borrowing forecast at R169bn for 2012/13, easing to R158bn the next year and R141bn the year after that. Revenue
Total government revenue for 2012/13 estimated at R905bn, or 27.4% of GDP. Spending
Total government expenditure in 2012/13 seen at R1.1 trillion, or 32% of GDP. Spending seen at R1.1 trillion and R1.2 trillion over the next two years. Infrastructure
Infrastructure spending seen at R844bn over the next three years. The government has R3.2 trillion of potential or existing “mega projects”.