SA has entered a fiscal debt spiral and only an extraordinary attempt, or luck, will get it out of it.

Economists typically express and compare the state’s debt to the size of the economy or GDP. State debt comprises mostly bonds (about 79% of total), treasury bills (10%), some other debts (1%) and foreign loans (10%). Total gross state debt should be about R3.352-trillion at the end of the current fiscal year (end of March 2020), or 65.7% of GDP.

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