Enoch Godongwana’s three budget surprises
The medium-term budget delivered a huge revenue overrun but, even so, the improvement in the debt trajectory surprised many — as did some shifts in the Treasury’s stance on spending. Growth, however, remains the elusive ingredient
03 November 2022 - 05:00
The markets loved the medium-term budget. And what wasn’t to love, with the numbers showing that debt will stabilise two years early and lower than before, and that the gross borrowing requirement will fall back to pre-Covid levels?
This was the main positive surprise of the day — the National Treasury’s new projection that SA’s debt ratio will peak at 71.4% of GDP this year and then begin to fall, even if the global environment worsens significantly and commodity prices continue to wane...
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