South Africa widens budget deficit forecast on ailing growth

South Africa’s Treasury on Wednesday widened its budget deficit forecast for the 2016/17 fiscal year to 3.4 percent of GDP from 3.2 percent previously, saying declining economic growth had reduced tax revenue estimates. In its medium term budget statement, Treasury said efforts to reduce borrowing had been frustrated by consistent downward adjustments to growth forecasts and tax revenue as household consumption and private sector investment fell. Aggressive cuts to spending might bolster i