Read in full — Moody's statement on SA
While South Africa's (Baa2 negative) government has consistently met its expenditure ceilings and is close to bringing the primary fiscal balance into surplus, low growth, revenue shortfalls and in some years the weakening rand are driving an increase in government debt to GDP ratios, Moody's Investors Service said in a report today. The report, "Government of South Africa FAQ on Fiscal Consolidation and Public Debt Trajectory", is available on www.moodys.com. Moody's subscribers can access this report using the link at the end of this press release. The research is an update to the markets and does not constitute a rating action. "South Africa has a record of sound fiscal management, especially on the spending side. The Treasury has consistently met spending ceilings introduced in 2012 and is aiming to reach primary balance in the next fiscal year" said Zuzana Brixiova, a Moody's vice-president, senior analyst and co-author of the report. "However, the country's debt-to-GDP ratio c...
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