Additional spending will be reduced by R68 billion over the medium term.
Finance Minister Enoch Godongwana has announced how the government will get the money that was intended to be collected from the value-added tax (VAT) hike.
Delivering his third budget speech in Cape Town on Wednesday, he said the shortfall that was supposed to be made up by the VAT increase will now be made up from reducing government spending over the medium term by R68 billion.
“This is done without compromising the fiscal strategy of sustainable public finances. These reductions are primarily aimed at provisional allocations that have not yet been assigned to votes.
“Our focus going forward is threefold: balancing the budget through spending efficiencies, strengthening revenue collection, and giving expression to the medium-term development plan.”
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