SA aims for surplus

TAX HIKES: REVENUE TO EXCEED EXPENDITURE FOR FIRST TIME IN 15 YEARS

- Liesl Peyper

The national treasury does not intend to raise taxes to make sure South Africa maintains a primary budget surplus over the next few years, says Deputy Finance Minister David Masondo.

He made the comment as a member of the audience at an event hosted by Rand Merchant Bank on Thursday morning, a day after Finance Minister Enoch Godongwana presented the medium-term budget policy statement (MTBPS) in parliament.

One of the more positive aspects of this year's MTBPS is the fact that South Africa will see a primary surplus for the first time in 15 years, meaning government expenditure is lower than revenue.

The treasury made a commitment in the MTBPS to target a primary budget surplus for the next decade.

Asked if a primary surplus is indeed possible for 10 consecutive years, Masondo jokingly said he was merely present at the event "to support" Godongwana, but he nevertheless responded to the question.