SOUTH AFRICA IS GOING BROKE AND HERE'S WHY...

There’s a looming budget and spending problem in South Africa that we are not talking about.

The South African national government spent R2,04 trillion1 in the 2022/23 financial year, now this represented a rise of 6,1% from the R1,92 trillion that they spend in in 2021/22.

In the same period, The South African Revenue Service (SARS) announced its preliminary revenue collection results for the 2022/2023 financial year, at midnight on 31 March 2023, SARS collected a record gross amount of R2067.8 bn. The net collection after payment of R381.1bn in refunds is R1686.7bn.

Now for those that are a little bit switched on mathematically you’ll realize that what we spent vs what we collected azihlangani.

This has been a trend in south Africa for a decade +.

For instance this year as at the end of March 2024, SARS collected a record gross amount of R2.155 trillion, year on-year 4.2%. When it came SARS paid out refunds of R414 billion to taxpayers, the highest ever quantum in refunds compared to R381 billion in the prior year, representing growth of 8.6%. This brings the collected net amount to R 1.741 trillion which is almost R10 billion higher than the revised estimate and R54 billion more than last year’s R 1.687 trillion.

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[sachinbangaru]

South Africa doesnt have a revenue issue it has an expenditure issue.

[thamimahlangabeza]

This is a sobering thought. Inasmuch as we do not appreciate bad news, I think what we as SAns make of your sage advice, is what makes all the difference. FOREWARNED IS FOREARMED.

[ClarenceBaloyi]

SA doesn't have 7.1M PAYE tax payers, 7.1M are people registered with SARS just cause they have a job - only 3.4M people earn enough to actually pay tax

[cuma]

But somehow MK, EFF and ANC voters want NHI, Increased NFSAS, "Land distribution without compensation ". I honestly think economics needs to be taught in every school

[karlgwambe]

😂😂😂Lowering government social spending would be political suicide. No political party wants to do that. It’s easier to keep this debt ball rolling and leave when shit goes belly up

[itumelengseeco]

We need to stop making 'a minimum wage of just R27, 58 per hour' an issue in this country, that money is simply not enough as is, It doesn't matter where you are in this country. We should not be exploiting people for the sake of creating jobs (like the DA wants to do). Talks of trying to reduce the minimum wage should not be entertained because things will look good on paper, i.e. reduced unemployment, but poverty will still be prevalent. The only thing we should be talking about is how to increase the pie.

[jameskillops]

We really do need to re-industrialise the economy as it will allow for home Productions be cheaper making things cheaper for the average South African in the long run

[sembachitibwi]

Financial management is a crisis in South Africa and majority of our political leaders are to blame. Maybe before anything is spent, communities should put it to a vote first that way we have accountability as well as avoid corruption. Hush penalties need to be given to businesses that are hired by government that fail to deliver on services and products. Transparency, accountability and proper management are key factors to begin building our country

[KURO.]

been saying the government needs to incentivise small business and stop these companies who only rely on government tenders. so many company created just for these tenders. and we need to start making things

[myperspective]

PRASA is improving, Transnet must also improve…

[bonolosolomon]

So much spending, yet no development.

[Officialsideguy]

Improve business funding for start-ups, as an entrepreneur I can tell you securing funding is extremly difficult. Change our education system which only teaches us to be employees not employers, provide incentives for youth to study and innovate not just to make babies.

[SoaMattrix-blce]

We have all the mineral resources that are mined on a daily basis, Where are all revenues going to. It’s unfair for a normal South African our government is really failing us.

[lulamampongoshe]

Very insightful video, it was just was hard for me to follow the video without infographics especially with all the huge amounts mentioned maybe show us the numbers on screen and all the calculations, that will be amazing. thank you for the content

[AK-ZA]

The xhosa interludes get me every time! You're doing such important work - thank you from London!

[bridgingpresence]

Great work as always. *maybe just add the figures’ comparisons you talk about on the screen, *graphs and such graphics. Would greatly help audience keep track and understand the scale and gravity.

[sincethatday]

we can definitely do better as a country; I appreciate your service to inform the nation about the important things of this great nation. 🇿🇦🙏🏿💚👑

[dumaziletyali]

Thanks Zimasa, your analysis reminds me of Kiyosaki book "Rich Dad Poor Dad""

[mza]

Yes I always wondered why things are so quiet. You can see things are different there's alot of drag year in year.

[Brad-sk]

This is an excellent video, it’s been a long process to get here and it’s far more severe when you consider broader debt categories together including state owned enterprises and other categories, below is a breakdown of South African total debts.

Here's a breakdown:

### 1. **National Government Debt:**
- **Amount:** Approximately ZAR 4.9 trillion (as of 2023).
- **Debt-to-GDP Ratio:** Around 71.4% of GDP.

### 2. **Household Debt:**
- **Amount:** About ZAR 2.4 trillion.

### 3. **Provincial and Local Government Debt:**
- **Amount:** Roughly ZAR 100-150 billion combined.

### 4. **State-Owned Enterprises (SOEs) Debt:**
- **Amount:** Approximately ZAR 1.2 trillion.

### 5. **Corporate Debt:**
- **Amount:** Around ZAR 3.7 trillion (as of 2023).
- **Context:** This includes loans, bonds, and other financial obligations of private sector companies.

### 6. **Other Categories:**
- **Financial Sector Debt:** This could include obligations by financial institutions, but they often overlap with other sectors and are challenging to separate without double-counting. However, some estimates suggest this might add another ZAR 2 trillion if considered separately.

### 7. **Total Debt in Local Currency (ZAR):**
- **Total:** Roughly ZAR 12.3-12.5 trillion.

### 8. **Total Debt in Nominal USD:**
- **Exchange Rate:** Assuming 1 USD = 18.5 ZAR.
- **Total in USD:** Roughly USD 665-675 billion.

### 9. **Total Debt in International Dollars (PPP):**
- **PPP Conversion Factor:** Assuming 6 ZAR per international dollar.
- **Total in International Dollars:** Approximately Int'l $2.05-2.08 trillion.