Fitch, the ratings agency that cut SA’s sovereign credit rating to junk status in April shortly after then president Jacob Zuma appointed Malusi Gigaba as finance minister, on Friday issued a lukewarm report on Wednesday’s budget.Eskom, forthcoming public sector wage negotiations, Zuma’s promise of free tertiary education and the planned introduction of National Health Insurance were among the issues Fitch said it was concerned about.The new budget deficit targets of 3.6% of GDP for the government’s 2020 financial year and 3.5% for 2021 were in line with Fitch’s forecast when it affirmed SA’s BB+ with stable outlook rating in November.In October’s medium-term budget policy statement (MTBPS), Gigaba projected the national government’s debt reaching 61% of GDP in its 2021 financial year.Wednesday’s budget lowered the forecast of national government debt, excluding local government debt, to 56% of GDP."But it is still worse than in last February’s budget, which implied 2021 financial y...
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.