October 24, 2018 / 12:10 PM / 23 days ago

South Africa sees wider budget deficits, halves growth forecast

CAPE TOWN, Oct 24 (Reuters) - South Africa forecast wider budget deficits for the current 2018/19 fiscal year and the next two years, hurt by a recession and shortfalls in tax revenue, the Treasury said on Wednesday.

In a medium-term budget policy statement (MTBPS), the Treasury said the budget deficit estimate for the 2018/19 fiscal year widened to 4 percent of GDP from 3.6 percent previously.

The budget deficit is seen rising to 4.2 percent in the next two years, the Treasury said.

The Treasury also halved the growth forecast for this calendar year to 0.7 percent.

In the three years to 2020/21, the tax revenue expected to underperform significantly, it added.

South Africa’s fiscal year runs from April to March. (Reporting by Olivia Kumwenda-Mtambo, Mfuneko Toyana and Wendell Roelf Editing by James Macharia)

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