Budget: SA to borrow R149bn
The wealthy will also be expected to pay more tax to pay back debt of R2.2 trillion.
Tax. Image: Shutterstock.
Government will have to borrow R149 billion to meet its proposed budget of R1.56 trillion.
Money coming in in the form of taxes amounts to R1.4 trillion of the total amount.
According to the budget, to meet current commitments and stabilise growth of debt, taxpayers will have to fork out an additional R28 billion in taxes.
Tax increases will be aimed at the minority wealthier South Africans.
Government said while it was acutely aware of the difficult economic conditions facing the majority of South Africans, in the long run they will be better off, as deterring tax increases meant more state debt.
Government debt now stands at R2.2 trillion and interest rates were continuing to grow rapidly.
“By acting now to stabilise debt, government is ensuring future generations will not be paying taxes for today’s expenses 20 or 30 years from now,” Treasury said in its budget.
