Finance minister Tito Mboweni’s 2020/2021 budget painted a bleak picture of economic growth, which the Treasury expects to slow further in the coming years, eroding the state’s ability to get a handle on its finances.

The worsening growth outcome, alongside deeper revenue shortfalls and draining support for state-owned entities (SOEs), is one of the main reasons that the government’s debt trajectory does not stabilise in the coming years — despite Mboweni announcing spending cuts of R261bn, which include a cut of R160bn in the state’s wage bill...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now