MTBPS: The analyst put infrastructure, along with energy – especially Eskom – as two non-negotiables when it came to spending.
'If the country intends to come out of the current situation unscathed, it will have to borrow, despite that not being the best option considering South Africa’s precarious fiscal position,' says an expert.
If Finance Minister Enoch Godongwana’s hands are so tied he cannot deal with the current public budget spending crunch, he will have no option but to resort to borrowing, which will precipitate an increase in the country’s foreign debt, political economy analyst Daniel Silke says. MTBPS: What to expect Godongwana will present his medium-term budget statement, or mini budget, tomorrow.
“The crunch comes at the worst possible time for the ANC, given it’s under a year before the next election.
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