CLAIRE BISSEKER: Why I’ll eat my hat if debt stabilises, as the Treasury promises
Administration lacks wherewithal to accelerate reforms or exercise expenditure restraint needed to bring debt under control
National Treasury officials are rubbing their hands with glee at the prospect of me being forced to eat my hat. I promised on a live Financial Mail webinar with finance minister Enoch Godongwana after the 2022 budget that I would eat my hat if he succeeds in achieving a primary surplus in 2023/2024 as promised, a year ahead of target.
Running a primary surplus (when revenue exceeds non-interest expenditure) is necessary to stop debt from rising inexorably in SA. As such, it is a crucial milestone on the Treasury’s path to stabilise the debt ratio at 75% of GDP by 2024/2025...