
Image: Jairus Mmutle/GCIS
The government’s plans to curb rising public debt are too ambitious, says a team of local and international economic advisers to President Cyril Ramaphosa. They recommend a “more gradual and credible” approach.
Debt-service costs in SA risk hampering efforts to fight the Covid-19 crisis and crowding out spending on priorities such as health care, education and lifting millions out of poverty.
Debt repayments are close to 12% of total government spending and the fourth-largest spending item, similar in size to what is spent on health, according to the budget presented in June to combat the coronavirus.
The recommendation by Ramaphosa’s economic advisory council, one of many contained in a report seen by Reuters, will fuel debate about the country’s fiscal strategy ahead of finance minister Tito Mboweni’s midterm budget later this month.