Fitch still doubtful of SA’s ability to implement consolidation
Credit ratings agency flags risks government’s consolidation efforts, notably the political difficulties of delivery on public sector pay cuts
Though the 2021 budget showed an improvement in SA’s fiscal trajectory “severe challenges to the government's ability to implement consolidation persist”, Fitch Ratings warned on Wednesday evening.
The statement followed finance minister Tito Mboweni’s delivery of the budget, which held firm on fiscal consolidations commitments — including a wage freeze for public servants as part of efforts to rein in the government’s deficit and debt levels. ..