Treasury sees two options for a fiscal anchor, but it needs careful design
One would impose a numerical debt and/or deficit ceiling; the other would require each administration to commit to a five-year fiscal plan
17 March 2025 - 05:00
A fiscal anchor would not be a panacea that would ensure more sustainable public finances for SA, but countries with fiscal anchors have somewhat better outcomes than countries that do not, the Treasury says in a fiscal anchor discussion document.
The document, published with last week’s budget, warns of risks to SA’s growth outlook and its ability to deliver essential social services posed by its high public debt level, which climbed from 24% of the size of the economy in 2009 to 74% in 2024 and is now set to peak at 76.2% this year, with debt costs consuming more than a fifth of tax revenue...
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