South African government moves to stabilize debt as budget deficit doubles
The government’s fiscal strategy for the next three years will be to reduce the deficit and stabilize the debt-to-GDP ratio, the National Treasury said on Wednesday (February 24).
“Since the 2020 Budget Review, the budget deficit has doubled and the revenue deficit for the year is estimated at R213.2 billion.
These changes reflect the impact of the Covid-19 pandemic, as well as the government’s response, which prioritized relief for households and businesses, along with a great effort to protect public health.
“The consolidated deficit in the current year, estimated at 14% of GDP, is the highest on record.”
The National Treasury said that gross national debt is projected to increase from 80.3% of GDP in 2020/21 to 87.3% of GDP by 2023/24, with debt service costs reaching R338.6 .. .