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Personal Finance | This is how government is spending your money

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The government’s biggest expense remains debt servicing costs; spending more than 20c of every tax rand collected on interest payments.
The government’s biggest expense remains debt servicing costs; spending more than 20c of every tax rand collected on interest payments.
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PERSONAL FINANCE

This year, government plans to spend R2.37 trillion. That equates to about R40 000 per person. Of this amount, R1.978 trillion goes to non-interest expenditure – this means spending on the actual delivery of goods and services. However, R382.2 billion will be spent just on paying interest on loans.

Government expects to receive R2.036 trillion in revenue through tax collection, which means that government will run what is described as a “primary budget surplus”.

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