Finance minister Enoch Godongwana’s medium-term budget policy statement on Thursday — which emphasised fiscal restraint despite building spending risks — was met with cautious optimism and may have an outside chance of stabilising SA’s credit ratings outlooks, according to economists.
Godongwana’s budget painted an improved fiscal picture as a better-than-expected growth recovery, a commodities surge that temporarily boosted revenues and the revision of GDP numbers all conspired to reduce the harrowing budget deficits and debt levels expected at the same time last year. ..
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