Finance Minister Tito Mboweni has announced a revenue shortfall of R213 billion, which is the largest on record. Tax revenue collection has been below forecasts for some time compounded by the fact that the country is in a deep recession.
South Africa is also dealing with a 32.5% unemployment rate, partly due to the coronavirus pandemic.
However, on Wednesday, Minister Mboweni had good news for the millions of social grant beneficiaries. The social grants have been increased by below inflation rates of between 1% and 3.4% from the 1st of April.
Budget allocations in critical sectors: