Budget lacks detail on reform implementation: Moody’s

Ratings agency says debt will increase.
Image: Scott Eells, Bloomberg

South Africa’s budget lacks detail on how and when the government will implement policies to boost economic growth, ratings agency Moody’s said, so public debt will likely continue to increase for years.

“As a result, we expect the economy will remain subdued and for fiscal consolidation to be slow, sustaining the rise in government debt in the next couple of years,” Moody’s said in a research report dated October 29.

Finance Minister Tito Mboweni pledged on Wednesday to freeze the wages of the country’s 1.3 million civil servants as part of government’s plan to narrow a yawning budget deficit and bring down debt.

Read:
Mboweni finally moves to slash government wage bill
Cosatu: ‘We’re not going to entertain an across-the-board wage freeze’

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Just remember where the ANC vote comes from. The poor who receive grants and the middle class who work in SOE’s.
Do they really care about Moodys, the economy or fiscal sustainability. Methinks not
Live for today they say

End of comments.

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