Kganyago says SA and African peers need to make tough fiscal choices to avoid unsustainable debts
SA faced the Covid-19 pandemic under strained conditions after failing to reverse a sharp increase in government spending after the global financial crisis and now needs "substantial" spending cuts, Reserve Bank governor Lesetja Kganyago said.
"When the global financial crisis hit our shores in 2008-2009, SA had been running small budget surpluses and the debt-to-GDP ratio was under 30%," Kganyago told a webinar hosted by the University of Pretoria on Monday. "This allowed for increased government spending, part of which was initially justified as countercyclical stimulus but which was not subsequently reversed."..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.