D-Day for new debt rules: All eyes on Godongwana’s fiscal anchor plan
Finance Minister Enoch Godongwana looks set to confirm that South Africa has finally turned the tide on government debt in the Medium-Term Budget Policy Statement.
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Finance Minister Enoch Godongwana looks set to confirm that South Africa has finally turned the tide on government debt in the Medium-Term Budget Policy Statement.
Finance Minister Enoch Godongwana is expected to signal the country’s commitment to fiscal discipline on Wednesday, with its debt-to-GDP ratio set to decline for the first time in more than two decades – potentially paving the way for a credit-rating upgrade as soon as next month.
Osagyefo Mazwai, an investment strategist at Investec Investment Management, says he does not expect tax relief for consumers at this week’s Medium-Term Budget Policy Statement, but that could change by February.
The Medium-Term Budget Policy Statement should use the current revenue outperformance to strengthen the public finances rather than create room for unfunded spending commitments, writes Lerato Ntuli of Anchor.
The Medium-Term Budget Policy Statement will confirm one of reform’s biggest successes after more than a decade of fiscal decline. But growth is the missing ingredient, writes Busisiwe Mavuso.