Government borrowing to reach R175.8bn.

PRETORIA - Net government debt is expected to reach R1.28trn three years from now as the state faces a tradeoff between prudent financial planning and supporting the economy. The borrowing is expected to boost the public debt from 22.6% of gross domestic product (GDP) in 2008/9 to 41.1% of GDP by 2012/13. The table below shows how total government debt is expected to grow:

To finance the budget deficit, government borrowing is projected to reach R175.8bn in 2009/10, declining gradually to R145.1bn by 2012/13 (see table below). Treasury says that foreign debt remains a small share of government's debt because South Africa maintains deep and liquid domestic capital markets.

Write to Julius Cobbett: julius@moneyweb.co.za

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quite dramatic debt-to-gdp goes from 23% to 41% let's hope they spend it wisely....... by charlie on October 28 2009, 06:16 Find this comment inappropriate? Report it

So much debt Where's the NCA when you need it :) by Sam on October 28 2009, 15:33 Find this comment inappropriate? Report it

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