CAPE TOWN – Finance Minister Tito Mboweni told Parliament on Wednesday that this year’s national debt exceeded R3 trillion and was expected to rise to R4.5 trillion in the next three years.
“Clearly, we need to do things differently,” said the Minister when delivering his second Medium-term Budget Policy Statement.
Mboweni said as things stood without any policy adjustments, debt would most likely exceed 70 percent of gross domestic product (GDP) by 2022/23. “This is a serious position to be in. Our little Aloe is not doing well. It needs attention, like our public finances.”
The consolidated budget deficit is now projected at 5.9 per cent of GDP in the current year. “If we exclude Eskom, non‐interest spending would have been R2.9 billion less than projected,” said Mboweni.
The Minister said the country’s fiscal framework had weakened substantially since the February budget, mainly due to weaker economic growth and lower revenues.