SA FACES MORE DOWNGRADES AS DEBT SOARS

Government has about a 30% chance of limiting state debt to 87.4% of GDP by 2023/24 and then gradually bringing it under control, say experts. Finance Minister Tito Mboweni on Wednesday said in his supplementary budget speech that government’s “central fiscal priority” was to prevent debt rising above this level.

By 2026/27, it should decline to just under 82% – a level that is forecast for this year. In February this year, before the Covid-19 pandemic hit the country, state debt was about 65% of GDP.

The supplementary