This is in comparison to the projections made in the mid-term budget presented by the National Treasury in October 2024. At that time, the Treasury estimated tax revenues to total just over R1.84 trillion ($99.94 billion).

According to PwC, the shortfall reflects the ongoing pressures facing SA’s economy, though it does not anticipate significant tax hikes in the upcoming budget announcement. The firm predicts that the government will likely increase sin taxes, such as those on alcohol and tobacco, and may introduce a slight inflationary adjustment to the fuel levy.

Finance Minister Enoch Godongwana is scheduled to present the 2025 budget on Wednesday, amid growing concerns over fiscal discipline and the country’s public debt. PwC highlighted its continued concern regarding the government's ability to effectively manage its public debt, as it faces competing priorities requiring substantial funding.

With the government juggling social, economic, and developmental goals, experts have called for careful management to avoid further strain on the nation's finances.

--SABC/ChannelAfrica--