(Bloomberg) -- South Africa’s main budget deficit for the 2022 fiscal year was smaller than the government’s estimate after better-than-expected revenue collection and spending that undershot projections. 

Africa’s most industrialized economy recorded a shortfall of 5.2% of gross domestic product on its main budget -- which excludes total spending by provinces, social security funds and some state entities -- for the year through March 2022, the National Treasury said in an emailed response to questions on Thursday. The monthly budget data showed a shortfall of 325.7 billion rand ($20 billion) for the fiscal year.

That compares with a revised estimate for a gap of 5.5% of GDP that Finance Minister Enoch Godongwana presented on Feb. 23 and is improvement from the 9.9% of GDP recorded in the prior fiscal year, when the coronavirus pandemic wrought havoc on the economy.

While the Treasury cautioned that the outcome is preliminary, the better-than-expected figure means the deficit on the consolidated budget could be less than the budget projection of 5.7% of GDP.

The smaller gap comes as revenue was buoyed by higher corporate income, thanks to a rally in commodities, and value-added tax. Income exceeded estimates by 12.2 billion rand, while spending undershot forecasts by 9 billion rand, the Treasury said. 

The smaller shortfall bolsters the Treasury’s chances of achieving a primary budget surplus -- where revenue exceeds non-interest spending -- in the 2024 fiscal year. That’ll bring its multi-year fiscal consolidation efforts to a close and allow the government to “reconsider the funding of South Africa’s priorities” in a more stable environment, it has said previously.

©2022 Bloomberg L.P.