DAVID MAYNIER: The cold facts of SA’s rampant debt
Last week, finance minister Nhlanhla Nene said he would engage on a new bill that aims to slam the brakes on SA’s runaway debt. It is vital he does
If you look at the staggering level of debt in SA, and how much it is costing to service that debt, it is clear that we need to think in more innovative ways about finding a solution The cold facts are alarming: national debt, measured as net loan debt, is set to balloon to a staggering R3.03 trillion — 52.2% of GDP — by 2020/2021. This makes it clear that our fiscal policy, which aims to stabilise debt, has been a failure. It means that by 2021, the country will be paying a staggering R214bn just in interest on our national debt. That would be R120bn more than we’re spending on higher education this year; R115bn more than we’re spending on police services; and R8bn more than we’re spending on health. The picture is clear: finance minister Nhlanhla Nene is drowning in red ink. So what is the solution? Well, I have written to parliamentary speaker Baleka Mbete to give notice of our plan to introduce a private members bill, under section 73(2) of the constitution, entitled the Fiscal ...
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