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Fiscal gaps in danger of widening, warns Treasury

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Nastional Treasury director general Lungisa Fuzile. (Supplied)
Nastional Treasury director general Lungisa Fuzile. (Supplied)

Cape Town - South Africa's low economic growth, rising debt and depleted revenues will hurt the Treasury's ability to close the country's large fiscal deficits, a senior official said on Wednesday.

Director general of the National Treasury, Lungisa Fuzile, warned in a document presented to a parliamentary committee that the country would have to do more with less and introduce a range of cost cutting measures to make up for the poor economic growth, expected at 0.4% in 2016 by the central bank.

"In the absence of action, low economic growth leads to shortfalls in revenue with fiscal consolidation being derailed as national debt rises," Fuzile said.

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