Higher revenues keep deficit in check

Johannesburg - South Africa's budget deficit narrowed in the first nine months of the 2010/11 financial year, thanks to higher tax collection as the economy recovers.

The budget deficit narrowed to R129bn from April to December, compared with R145.86bn in the same period the previous year, the  National Treasury said on Friday.

Tax revenue was higher at R471.704bn, compared with R411.481bn the previous year.

In its medium-term budget statement in October, the Treasury said it expected to collect R761bn in tax for the 2010/11 financial year, and the budget deficit would narrow to 5.3% of gross domestic product, compared with 6.7% in 2009/10.