Debt stabilisation key to a sound supplementary budget, DA says
If debt is not constrained in the long term, debt service costs will crowd out the provision of basic services, the party has warned
It is critical that finance minister Tito Mboweni’s supplementary budget on Wednesday outline a credible debt stabilisation path over the medium-term to reduce the risk premium on government debt, DA finance spokesperson Geordin Hill-Lewis said on Monday.
While accepting that debt would rise in the short term to cater for the cost of the Covid-19 pandemic and the R285bn estimated fall in revenue in 2020, the Treasury had to demonstrate a commitment to reducing debt over the medium-term to reduce interest costs, Hill-Lewis said at a media briefing on the DA’s proposals for the supplementary budget, which Mboweni will table in parliament on Wednesday...
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