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Johannesburg - Government revenue rose by 11.3% year on year in May to R56.4bn after a tiny 0.6% rise in April‚ the Treasury’s exchequer account showed on Friday.
Expenditure growth slowed to 2.2% in May after a 22.9% surge in April.
The fiscal deficit narrowed to R17.5bn in May from R21.3bn in May 2012 and R41.2bn in April.
This brought the revenue increase for the first two months of the fiscal year to 6.6% compared to expenditure growth of 12.4% .
The revenue increase in the fiscal year ended March was 6.3% compared to 10.5% for the full 2011-12 fiscal year and 15.3% for the full 2010-11 fiscal year‚ while expenditure was up 8.3% after a 10.5% gain in 2011-12 and a 7.8% rise in 2011-12.
The fiscal deficit in the 2012-13 fiscal year grew to R175bn compared to R148.5bn in the same period in the last fiscal year.
Finance Minister Pravin Gordhan said in his budget speech in February that the fiscal deficit would be larger than previously expected due to slower revenue growth.
The budget deficit‚ which determines the level of state borrowing‚ deteriorated in 2012-13 from an estimated R170bn or 4.8% of gross domestic product (GDP) at the time of the 2012 budget‚ to R184.5bn or 5.2% of GDP this year‚ the 2013 budget review showed.
Gordhan also told a media briefing earlier that the wider deficit was as a result of “revenue losses” and not because of “excessive expenditure”.
The Treasury said that weaker-than-expected economic growth and supply disruptions in the mining sector had resulted in a downward adjustment in revenue estimates for 2012-13.
Tax revenue is expected to be R16.3bn below last year’s R826bn budget estimate.
Treasury expected the lower base of revenue collection to carry through over the three-year spending period.
Tax revenue was revised down by R13.2bn and R27.8bn in 2013-14 and 2014-15 respectively.
At the beginning of this month‚ the South African Revenue Service (Sars) said it had collected R814.1bn in the tax year to the end of March.
This was an increase of 9.6% compared to the 2012 tax year‚ but below the 2012 budget projection of R826.4bn.
The three main revenue contributors for 2012/13 were:
>>Personal Income Tax (PIT) - total collections were R276.8bn and grew by R25.5bn (10.1%);
>>Corporate Income Tax (CIT) - total collections were R161.1bn and grew by R7.8bn (5.1%) and
>> Value Added Tax (VAT) - total VAT collections were R215.5bn and grew by R24.4bn (12.8%).
Expenditure growth slowed to 2.2% in May after a 22.9% surge in April.
The fiscal deficit narrowed to R17.5bn in May from R21.3bn in May 2012 and R41.2bn in April.
This brought the revenue increase for the first two months of the fiscal year to 6.6% compared to expenditure growth of 12.4% .
The revenue increase in the fiscal year ended March was 6.3% compared to 10.5% for the full 2011-12 fiscal year and 15.3% for the full 2010-11 fiscal year‚ while expenditure was up 8.3% after a 10.5% gain in 2011-12 and a 7.8% rise in 2011-12.
The fiscal deficit in the 2012-13 fiscal year grew to R175bn compared to R148.5bn in the same period in the last fiscal year.
Finance Minister Pravin Gordhan said in his budget speech in February that the fiscal deficit would be larger than previously expected due to slower revenue growth.
The budget deficit‚ which determines the level of state borrowing‚ deteriorated in 2012-13 from an estimated R170bn or 4.8% of gross domestic product (GDP) at the time of the 2012 budget‚ to R184.5bn or 5.2% of GDP this year‚ the 2013 budget review showed.
Gordhan also told a media briefing earlier that the wider deficit was as a result of “revenue losses” and not because of “excessive expenditure”.
The Treasury said that weaker-than-expected economic growth and supply disruptions in the mining sector had resulted in a downward adjustment in revenue estimates for 2012-13.
Tax revenue is expected to be R16.3bn below last year’s R826bn budget estimate.
Treasury expected the lower base of revenue collection to carry through over the three-year spending period.
Tax revenue was revised down by R13.2bn and R27.8bn in 2013-14 and 2014-15 respectively.
At the beginning of this month‚ the South African Revenue Service (Sars) said it had collected R814.1bn in the tax year to the end of March.
This was an increase of 9.6% compared to the 2012 tax year‚ but below the 2012 budget projection of R826.4bn.
The three main revenue contributors for 2012/13 were:
>>Personal Income Tax (PIT) - total collections were R276.8bn and grew by R25.5bn (10.1%);
>>Corporate Income Tax (CIT) - total collections were R161.1bn and grew by R7.8bn (5.1%) and
>> Value Added Tax (VAT) - total VAT collections were R215.5bn and grew by R24.4bn (12.8%).
