The Democratic Alliance (DA) has described the publishing of its intention to introduce legislation to stabilise the national debt as a positive move.
The DA says it reached a significant stage when its notice of intention to table the Fiscal Responsibility Bill was published in the Government Gazette for public comment.
DA spokesperson on Finance Geordin Hill-Lewis says the Bill will be tabled in Parliament this week.
Hill-Lewis is now calling on all South Africans to submit their comments on the bill. He says if passed, this will pave way to reduce national debt and associated debt service costs, as well as limiting government’s ability to borrow more money.
It would among other things, require the Finance Minister to table a Fiscal Responsibility report the same time when the National Budget is tabled.
Rating agency Moody’s Cuts SA’s 2020 GDP growth forecast:
Ratings agency Moody’s on Friday cut its 2020 growth forecast for South Africa to 0.4% from 0.7%, one of several countries it saw as having lower growth prospects in a new report because of the coronavirus outbreak.
Moody’s is the last of the major international agencies to keep an investment grade rating on South Africa and is scheduled to review that assessment this month.
“We expect these shocks to materially slow economic activity, particularly in the first half of this year. We have therefore revised our 2020 baseline growth forecasts for all G-20 economies.”