Budget deficit warning issued
By TMG Editor - 13 June 2014
ECONOMISTS have warned that the government's consolidated budget deficit for this year will be higher than forecast as poor economic growth restricts revenue.
This may force the government to sacrifice spending on infrastructure projects to stimulate economic growth and job creation.
Weak domestic demand and the platinum strike are expected to see revenue fall short of the Treasury's projections‚ with weak consumer demand curbing value-added tax collections‚ which account for more than a quarter of tax revenue. A weak economy and strike-related declines in mining and manufacturing could also reduce inflows from corporate tax‚ which accounted for about 20% of tax revenue last year. – I-Net
