Medium-term budget: Finance Minister Enoch Godongwana’s debt warning

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South Africa's GDP only expected to grow by 1.1%, while debt continues to rise.

Minister of Finance, Enoch Godongwana said the country’s debt has risen too fast and too high. Picture: South African Government/X

“Wars elsewhere, such as in the Sudan and the conflict between Ukraine and Russia, threaten regional and international stability, as well as global trade.” He added the government will continue to restructure the electricity supply industry, with the desire to establish a competitive electricity generation market.

“Debt-service costs will reach R388.9 billion in the current financial year. Put differently, this means for every one rand of revenue that government raises this year, 22 cents of this is paid in debt-service costs.”He added they have taken steps to reduce the budget deficit, which has led to them restraining spending and maintaining stable tax collection.

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