South Africa's public debt is forecasted to get worse; Eskom's plans for a National Transmission Company hits a road block; Treasury is preparing for South Africa to be ousted from the AGOA; and Eskom is burning through its diesel budget.
Research by the Wits Public Economy Project forecasts that South Africa’s public debt will rise towards 80% by 2025 due to an increase in money spent on wages, grants and revising existing debt. This implies larger spending cuts and/or higher taxes, which will further deteriorate economic growth and service delivery.
Godongwana added that this type of consideration will take some time, but expected stresses include higher inflation rates, borrowing costs, and bond yields – all of which weaken the fiscal position considerably. [Eskom has already burnt through R12.4 billion on diesel to run its emergency generation fleet in just under the first four months into the current financial year ending 1 March 2024.
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