Rating agencies unconvinced SA can stabilise debt levels

File: Fitch says government's expectation that debt will peak at 87.4 percent of GDP in 2024 is “optimistic”.

File: Fitch says government's expectation that debt will peak at 87.4 percent of GDP in 2024 is “optimistic”.

JOHANNESBURG - Two major rating agencies remain unconvinced the country can stabilise debt levels within four years as projected in the recent Adjustment Budget.

Fitch says government's expectation that debt will peak at 87.4 percent of GDP in 2024 is “optimistic”.

READ: Debt is our weakness, says Mboweni

Tax revenue will come in at about R300-billion short of expectations this year while government struggles to rein in big-spending items on its expenditure list.

The wage bill is one of them.

Moody’s also warned the country risked going over a fiscal cliff after Finance Minister Tito Mboweni announced the country’s debt is likely to reach R4-trillion by the end of the year.

Source
eNCA