Low economic growth hinders government to service its debt: Government - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Finance Minister Enoch Godongwana says the state is faced with a multitude of challenges and is working hard to resolve these problems.

Finance Minister Enoch Godongwana says, “Debt on its own is not the problem, the issue is the capacity of the economy to service that debt. We are accumulating a lot of debt in an environment when the economy is not growing. What that means is the capacity of the economy to service this debt is becoming a challenge.”

The capture of organs of state which manifested in fraud and corruption have added to the debt challenges the country is facing. Many of these institutions, such as Eskom have also had to be bailed out as they struggled to manage their affairs.“Eskom has accumulated debt to the extent that its capacity to service that debt now is questionable. Therefore, there is a general agreement in my view when I look at the International Monetary Fund report and the World Banks report is saying the challenges that are facing the government – is that we have to think how to manage that debt for Eskom.

The minister cites tax incentives as an example of the tools that can be utilised to fulfill this objective.

 

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Absurd, low economic growth is the symptom of systemic anc theft and corruption. Put your fricken mates in JAIL! voetsekANC

It is not only economic growth that is hindering growth, It is YOU giving billions of Rands to Corrupt Government Dept at National, Provincial and Local Level to steal and waste as they wish with impunity. How do you dare give a Dysfunctional Municipality money to plunder?!

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Working hard to finish whatever is left of it. 1 SAA is gone. 2 Prasa is gone 3 Denel is gone And now Jamnadas came back from the 'grave' to deal with Eskom.

Still wondering when Twitter will give us a button for 'L.O.L', it is really becomming urgent now.

Mncim

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