So South Africa’s Finance Minister took to the podium last week to tell the country what to expect going forward into the next year.
This was sort of like the speech that your mom & dad give you& your siblings before Christmas & the festive season spending. Basically, how is Christmas going to be like based on what money we have considering that you all have to go back to school in January… that speech.
See the thing is that South Africa has a revenue shortfall of over R22.3 billion for the current year, this is partly because the South African Revenue Service (Sars) missed the National Treasury’s tax revenue target. Now the consequence of this will be an increase in SA’s debt-servicing costs.
This is the story from Treasury and the finance departments medium-term budget policy statement which was tabled in parliament on Wednesday 30th October.
The Finance Minister Enoch Godongwana doubled down on the government’s policy of fiscal consolidation.
What do you think South Africa needs to do to fix its debt situation ?
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