South Africa’s debt has increased significantly and Finance Minister Pravin Gordhan will have to address it when he tables the Medium Term Budget Review Policy Statement next week.
This is according to the Parliamentary Budget Office which tabled a meeting of the oversight committees on Finances ahead of the mini-budget.
The debt has risen from 22% of the GDP in 2007/2008 to 46%.
There are also high unemployment levels and low investment.
Director at the Parliamentary Budget Office, Professor Mohammed Jahed, says money for expenditure is limited.
“We note debt increased significantly and how we manage debt is going to be a critical issue. What we’ve seen as a result of this debt is that there have been growing interest payments and reduced funds available for expenditure priorities.”
In an address at the National Religious Association for Social Development on Wednesday, Gordhan assured South Africans that their finances are in good hands.
He says the fiscal framework he will present next Wednesday will show that Treasury wants to manage the country’s finances well.
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