×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

The chunky budget review that goes with the finance minister’s budget speech is always a more useful guide to fiscal realities than the speech itself. And the review tabled in parliament yesterday goes in hard from the start. The government will over the next three years pay more for the interest on its debt than it will spend on health, social development or peace and security, finance minister Enoch Godongwana wrote in his foreword. Stabilising the debt burden is therefore essential, he says.

The review goes on to set out just how fragile SA’s public finances are, despite what it calls the “flatter to deceive” numbers resulting from this year’s revenue windfall. With a debt burden heading towards R5-trillion, and debt service costs now consuming 21c of every rand of revenue the government collects — about 5% of GDP — SA has used up its resources dealing with the crises it has already faced. It has no space to deal with further crises, nor room to tackle social and e...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

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

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.