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.
In a statement released 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.
Hill Lewis says South Africa has already spent more than R220 billion on interest charges in 2020.
He says if nothing is done the national debt could increase to R4.2 trillion or 67.5% of GDP by the 2022/2023 financial year.
The bill also seeks to give the National Assembly the power to amend, review or terminate the fiscal rule every four years starting from the 2023/2024 financial year.
It would be among other things requiring the Finance Minister to table a Fiscal Responsibility report the same time when the National Budget is tabled.
