SOE risks could undermine any fiscal debt rule, says Treasury
If the risks materialised, the DA’s Fiscal Responsibility Bill may make the crisis worse, Edgar Sishi tells MPs
25 August 2021 - 18:26
Introducing a fiscal responsibility rule to limit government debt as proposed by the DA was not appropriate if the risks that state-owned enterprises (SOE) pose for the fiscus have not been addressed, the Treasury said on Wednesday.
There was the danger that the government would be forced to break the debt rule to deal with these risks, precipitating a crisis of confidence in the rule itself, acting head of the Treasury’s budget office, Edgar Sishi, said during a meeting of parliament’s finance committee to discuss the Fiscal Responsibility Bill proposed by the DA’s Geordin Hill-Lewis...
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