https://en.sputniknews.africa/20230903/lower-spending-not-key-to-reducing-south-africas-deficit-ramaphosa-says-1061826181.html
Lower Spending 'Not Necessarily' Solution To Reducing South Africa's Deficit, Ramaphosa Says
Lower Spending 'Not Necessarily' Solution To Reducing South Africa's Deficit, Ramaphosa Says
Sputnik Africa
In 2020, the National Treasury projected a primary surplus within three years and stabilization of debt as a percentage of GDP in 2025, but COVID-19 pandemic... 03.09.2023, Sputnik Africa
2023-09-03T11:15+0200
2023-09-03T11:15+0200
2023-09-03T11:59+0200
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Cutting spending is not necessarily the response to the nation's financial woes, South African President Cyril Ramaphosa said, as quoted by media.The fiscal challenges, the leader noted, are that revenues have been less than the government anticipated.The National Treasury revealed on Wednesday that South Africa witnessed a deficit of 143.76 billion rand ($7.63 billion) in July, rather than a deficit of 123.7 billion rand ($6.56 billion), as had been expected.According to the media, the figure was the nation's largest deficit since 2004 at least.The Reserve Bank of South Africa governor Lesetja Kganyago said this week that the budget deficit could persist for some time until the finance ministry issues new proposals which are scheduled for October.The Finance Minister Enoch Godongwana, local media reported, will propose significant spending cuts and forcing agencies to find other means to fund pay raises.Godongwana also noted that the government aims to stabilize South Africa’s debt level at 70 percent of GDP, but it has already risen to 72 percent.
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Lower Spending 'Not Necessarily' Solution To Reducing South Africa's Deficit, Ramaphosa Says
11:15 03.09.2023 (Updated: 11:59 03.09.2023) In 2020, the National Treasury projected a primary surplus within three years and stabilization of debt as a percentage of GDP in 2025, but COVID-19 pandemic mitigation and other domestic shocks have not helped to drive economic growth, the agency said.
Cutting spending is not necessarily the response to the nation's financial woes, South African President Cyril Ramaphosa said, as quoted by media.
The fiscal challenges, the leader noted, are that revenues have been less than the government anticipated.
"What should we do? The discussion is ongoing. It is not necessarily cutting spending, it is seeing how best you focus on your key delivery areas," he said.
The National Treasury revealed on Wednesday that South Africa witnessed a deficit of 143.76 billion rand ($7.63 billion) in July, rather than a deficit of 123.7 billion rand ($6.56 billion), as had been expected.
According to the media, the figure was the nation's
largest deficit since 2004 at least.
The Reserve Bank of South Africa governor Lesetja Kganyago said this week that the budget deficit could persist for some time until the finance ministry issues new proposals which are scheduled for October.
The Finance Minister Enoch Godongwana, local media reported,
will propose significant spending cuts and forcing agencies to find other means to fund pay raises.
Godongwana also noted that the government aims to stabilize South Africa’s debt level at 70 percent of GDP, but it has already risen to 72 percent.
