Budget 2021/22 preview: Smaller deficits than expected in October

Highlights

Revenue for Budget 2020/21 can be about R216 billion less than national treasury’s estimate in February 2020.
However, it could be R100 billion more compared to the Medium-Term Budget Policy Statement (MTBPS).
This revenue overrun is broad based and points to a strong economic recovery during the second half of 2020.
The budget deficit for 2020/21 will likely be much lower than the 15,7% of gross domestic product (GDP) announced in the MTBPS.
The budget for 2021/22 and subsequent years will focus on the priorities set out by President Cyril Ramaphosa in the State of the Nation Address (Sona).
Personal Income Tax rates are expected to remain unchanged in 2021/22.