Question

Which of the following statements regarding the budget pf the South African government is correct?

a. Less than half of government's non-interest expenditure is financed by tax revenue.

b. Local government is responsible for the largest part of government expenditure.

c. An increase in the government deficit will result in an increase in debt-servicing costs in future.

d. The government's deficit can only be financed by borrowing from foreigners.

Answer 1

Less than half of the government's non-interest expenditure is financed by tax revenue.