Cape Town - Finance Minister Pravin Gordhan
released his medium-term budget policy statement on Thursday. Here are the highlights:
Budget deficit
The budget deficit is projected at 4.8% of gross domestic product (GDP) for the fiscal
year to March 2013, in line with economists’ expectations. The deficit is
projected to fall to 3.1% by 2015/16.
Growth
Growth forecast is trimmed slightly to 2.5% for 2012, from
2.7% seen in February. GDP is projected to grow to 3% in 2013 before reaching
4.1% in 2015.
Inflation
Inflation will average 5.7% in 2012, within the 3-6% target
range, and is to remain target-bound over the next three years. Inflation is seen
declining from 5.5% in 2013 before touching 4.9% in 2015.
Revenue
Total government revenue for 2012/13 estimated at R900bn, or
27.5% of GDP.
Spending
Total government expenditure in 2012/13 seen at R1.1
trillion, or 32.5% of GDP. Spending seen at R1.1 trillion and R1.2 trillion
over the following two years.
Infrastructure
Government has reiterated plans to spend R845bn on
infrastructure over the next three years.
Debt
Total net government debt is to hit R1.16 trillion, or 32.8% of
GDP, by the end of 2012/13, rising to R1.71 trillion by 2015/16, or 39.2% of
GDP.
Borrowing requirement
Net borrowing is forecast at R165bn for 2012/13, rising to
R173bn the following year before easing to R162bn in 2014/15.
Current account
The current account deficit is expected to widen to 5.9% of GDP in
2012 from 3.3% in 2011, as the trade balance deteriorates. It is expected to narrow
marginally over the next three years, reaching 5.5% in 2015.