Budget prediction | Blackouts to cut GDP growth, tax revenue

JOHANNESBURG - Blackouts are keeping the country's finances in the red.

Audit firm PWC predicts Finance Minister Enoch Godongwana will lower tax revenue estimates in his budget.

It says power cuts and the country's transport network troubles will hurt collection.

READ: SA nears peak of rate hikes, says economist

The firm expects tax revenues to be about R11-billion lower than previously forecast.

It says constant power cuts and high fuel costs, have hurt profits, and shrunk tax contributions.

READ: Power cuts cost the economy R1bn a day: Mantashe

PWC Chief economist Lullu Krugel says blackouts will remain the country's biggest obstacle to growth.

"The Finance Minister needs to make clear what his plans are with regards to the transfer of Eskom debt to the sovereign's balance sheet," said Krugel.

Krugel says that the National Treasury should also make clear how this will impact consolidated expenditure and ultimately, the taxpayer.