Finance Minister Malusi Gigaba sent a strong message in his Wednesday budget that the Treasury is determined to stabilise growth in public debt and rein in the ballooning debt-to-GDP ratio.
Despite a revenue gap that will persist over the medium term, deep cuts in government expenditure are expected to narrow the consolidated budget deficit from 4.3% in 2017-18 to 3.5% in 2020-21. More importantly, growth in the gross debt-to-GDP ratio is projected to moderate, rising from 53.3% in 2017-18 to 56% in 2020-21.
These may seem like small victories, but when compared with the forecasts in the medium-term budget policy statement presented in October, where debt-to-GDP was forecast to grow steadil…
Read the full article at: https://www.businesslive.co.za/bd/economy/2018-02-22-keeping-a-lid-on-debt-to-gdp-ratio-will-help-assist-growth/
