Economists warn fiscal prudence is going off the rails
Government debt could reach 90% of GDP by 2030
15 February 2024 - 05:00
Government debt could reach 80% of GDP within two years and 90% by the end of the decade, weighing on the economy and the government’s ability to deliver services, economists warned ahead of finance minister Enoch Godongwana’s budget speech next week.
While Godongwana is likely to find ways to fund the debt in the short term — such as tapping into the government’s cash resources and the profits on SA’s foreign exchange reserves — it will become tougher to finance in the longer term...
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