Fitch, the first credit-ratings agency to issue an opinion on Wednesday’s medium-term budget statement, expressed strong scepticism on Thursday that SA could return to a path of fiscal consolidation, raising fear of a downgrade even before the ANC’s elective conference. Finance Minister Malusi Gigaba, who engaged with ratings agencies immediately after his statement in Parliament, on Thursday was at pains to emphasise that although the numbers showed sharp deterioration this was an aberration and would be corrected by February’s main budget. But Fitch was clearly unmoved, saying in its statement that the widening deficit and growing debt burden suggested "a change in the direction of policy making away from a focus on fiscal consolidation". This shift was occurring faster than it previously expected. Fitch did not buy Gigaba’s assurance on Wednesday that a high-level team of cabinet ministers headed by the president, which had the task of considering proposals to shore up public fin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.