JOHANNESBURG - Finance Minister Tito Mboweni will deliver an adjusted budget on Wednesday, with red flags across the country’s finances.
Mboweni will reprioritise R130-billion allocated in February and outline how much the county will borrow as it funds a R500-billion stimulus package.
The COVID-19 turmoil worsened an already desperate economy and threw all projections out of the window.
Treasury expects tax revenue to shrink by 15 to 20 percent, drying up state coffers even further.
There’s been no revenue from tobacco tax, VAT collections are down, business profits are down, and fewer employees are contributing to income tax.
On Wednesday, Mboweni is likely to tell us that the gap between our revenue and spending has deteriorated closer to 15 percent.
The Reserve Bank says it'll be the worst in a hundred years.