South African Finance Minister Pravin Gordhan has said that the government had collected higher revenue during the 2012 -2013 fiscal year than previously estimated as part of the annual budget in February.

Gordhan said that the government had earlier estimated revenue collection at R810.2 billion, but it is now believed that almost R4 billion more was collected during the financial year. The data shows that the government collected R814.1 billion in revenue during the entire financial year till March 31, 2013 compared to R71.5 billion in the previous year, recording a growth of 9.6 per cent.

Experts say that increase of 9.6 per cent in revenue collection is significant, as it is much higher than real growth in gross domestic product (GDP) of 2.5 per cent and inflation of 5.6 per cent during the financial year. Gordhan said that the new estimates and some under spending in some areas would reduce the gap between government spending and revenue from the earlier estimate of 5.2 per cent of GDP to below 5 per cent now.

Experts say that the revised estimates are also likely to help the country get a better rating by global rating agencies as it will improve its financial position in the financial year.