The draft legislation would require governments to set and report against their own fiscal objectives, with Parliament and the Financial and Fiscal Commission given stronger oversight roles.
Fitch’s first upgrade in 21 years caps a remarkable turnaround, but hidden liabilities, weak growth, and structural problems stand between the country and investment-grade status.
While borrowing remains substantial, improving bond yields, firmer revenue, and reduced debt-service growth suggest a more credible consolidation path.
Finance Minister Enoch Godongwana won’t reveal where the spending cuts or savings will come from but says South Africa must “do more with less”.
South Africa’s core fiscal challenge is to get the gap between economic growth and the cost of borrowing back into positive territory.
The commissioner says the Revenue Service has put measures in place to meet the revised estimate for revenue collection.
