On the eve of the release of data likely to show a flatlining economy, deputy finance minister David Masondo said the government is determined to take the necessary action to fix an unsustainable financial position that is threatening to cost the country its last remaining investment-grade rating.

At a conference hosted by JP Morgan Cazenove in Cape Town on Monday, Masondo said public debt, which is forecast to reach 60% of GDP in this fiscal year, is “not sustainable” and the government wants to move away “from the recent trend of the fiscal budget increasingly becoming a bailout fund for state-owned enterprises”.

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