Public finances dangerously overstretched, says Treasury official

File: National Treasury now expects the economy to contract by 7.2 percent in 2020, the biggest shrinkage in the local economy in 90 years.

File: National Treasury now expects the economy to contract by 7.2 percent in 2020, the biggest shrinkage in the local economy in 90 years.

Pixabay/stevepb

JOHANNESBURG - South Africa's public finances are dangerously overstretched, according the Acting Head of Treasury's Budget Office, Edgar Sishi.

He says public coffers simply cannot support public investment.

READ: Mboweni: SA economy to shrink by 7.2% in 2020

Earlier this week, Finance Minister Tito Mboweni tabled an extraordinary adjustment budget due to the coronavirus crisis.

He sounded a stark warning on debt.

National Treasury now expects the economy to contract by 7.2 percent in 2020, the biggest shrinkage in the local economy in 90 years.

Source
eNCA