South Africa's National Treasury said on Wednesday that this fiscal year's budget deficit would be wider and public debt higher after it was forced to backtrack on a proposed increase in value-added tax (VAT).

While consumers welcome relief from the reversal of the VAT hike in South Africa, the decision also means that the basket of zero-rated items will not be extended.

President Donald Trump’s tax and immigration bill could add $2.3 trillion to the deficit over 10 years. Trump hosted the president of South Africa at the White House. The Justice Department is ending police reform deals with two cities.

Mtambo CAPE TOWN (Reuters) -South Africa made only minor adjustments to its spending plans and deficit projections in a third budget presented on Wednesday that was overshadowed by a meeting between its president and U.

South Africa doesn't have the funds to cover the over $430 million shortfall caused by the Trump administration's cuts in foreign aid, the country's finance minister said Wednesday. Finance Minister Enoch Godongwana spoke to Parliament while presenting an updated budget — one without the value-added tax increases that had sparked public outcry and fierce disagreement among parties in the ruling coalition.

South Africa’s National Treasury is considering raising additional borrowing in its latest rendition of the budget, to be delivered on Wednesday, to cover a revenue shortfall after a plan to increase taxes was scrapped.

Finance Minister Enoch Godongwana is due to return to parliament on May 21 for a third try at passing South Africa's budget after disputes with coalition partners over plans to increase tax revenue, leaving him with a 75 billion rand ($4.1 billion) budget hole.

Finance Minister Enoch Godongwana responds to a heartfelt plea from a UCT medical student, pledging to restore critical health services and address the ongoing healthcare crisis in South Africa.

The head of South Africa’s second-biggest political party said talks about the nation’s revamped budget are “are going very, very well,” a signal that the coalition government is resolving differences that derailed the National Treasury’s previous tax and spending proposals.

Parties are split, with some calling Budget 3.0 progress and others accusing it of deepening poverty and failing the economy.