A slightly adjusted version of a well-known John Maxwell quote speaks to SA’s fiscal path rather well: “Credibility is a country’s currency. With it, it is solvent. Without it, it is bankrupt.”

The 2021 budget was certainly better than expected relative to the Treasury’s far more pessimistic view back in October 2020. The budget deficit is now narrower as a percentage of GDP than before, but still the widest it’s ever been. The Treasury continues to push for debt stabilisation, thankfully at a lower peak of 88.9% of GDP in 2025/2026, and the one thing that keeps investors, citizens and other stakeholders willing to wait and see is the credibility of the fiscal plan to get there...

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.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.