Finance Minister Tito Mboweni is expected to highlight several areas in the economy that have deteriorated.
Wednesday’s Medium-Term Budget Policy Statement is expected to lay bare the country’s economic woes.
In his speech, Finance Minister Tito Mboweni will highlight several areas in the economy that have deteriorated.
At the centre of the country’s economic trouble is falling revenue to meet growing spending.
Since 2009, government has been borrowing to meet its budget shortfall. It is no longer sustainable for the country to continue borrowing.
The cost of servicing government debt is expected to reach R4.9 billion in 2019/20 and R7.9 billion 2020/21.
Executive Director of Centre for Development and Enterprise Ann Bernstein says: “South Africa’s fiscal crisis is very serious. The weight of our debt is holding back growth. We need to adopt reforms that will send strong signals about a new ear that will impress investors.