Despite spending cuts government’s fiscal position remains tight
Finance minister Tito Mboweni walked a tough line on spending cuts — including on government wages — but debt levels are set to carry on rising
26 February 2020 - 16:28
Finance minister Tito Mboweni’s much anticipated Budget Review painted a grim picture on Wednesday, revealing a shrinking envelope of money to run the country as it continues to contend with poor growth and declining revenues, which have contributed to a deterioration in public finances.
Disappointing revenues, alongside continued spending pressure to support struggling state-owned entities (SOEs), means debt is not projected to stabilise over the coming three years. This despite expenditure cuts Mboweni announced amounting to R261bn, including a cut of R160bn to the state’s wage bill...
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.