The overall message was a grim one on Day 90 of the Covid-19 lockdown, one of the world’s hardest and longest. Debt, said Finance Minister Tito Mboweni, was South Africa’s weakness. Debt service cost has become the fastest-growing item – to R229.3-billion in 2020, according to February’s Budget, up from R201.2-billion in 2019 and R184-billion in 2018. And later, in his 40-minute address, Mboweni reminded South Africa’s debt is already costing much – to date the country spent on debt service costs as much as on Health. Zero-based budgeting was described as the “narrow gate” government would go through as part of the economic recovery road map. It would stabilise the debt at 87.4% of GDP by 2024 and narrow the deficit. Invoking the image of a hippo’s wide-open jaws – to symbolise the gap between income and expenditure – the finance minister said that closing this gap was the Herculean task South Africa faced.
SOURCE: DAILY MAVERICK
More Stories
One of Africa’s Most-celebrated Authors and Playwrights has Died Aged 81
Ethiopian Airliner Accused of Discrimination
What To Do about Khartoum?
Scholars Study the Political Dynamics of West Africa
News App Ensures Nigerians are Informed
Zimbabweans Living in South Africa in Limbo
Uganda’s Pension Market Experiences Significant Growth
The Corner Shop Gets Digitised
Last year, Africa Birthed a lot of Notable Innovations Created by the Younger Generation
Offering Passengers to Seychelles More Travel Options
Tinubu Hits the Ground Running
Russian Minister Makes a Quick Stop in Nairobi