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South Africa Targets Narrowing of Budget Gap From Next Year (1)

July 1, 2020, 6:10 AM

South Africa’s Treasury will outline plans in its medium-term budget policy statement in October to free up 250 billion rand ($14.4 billion) to narrow the fiscal gap from next year, the acting head of its budget office said.

The Cabinet agreed to target a primary budget surplus by 2023-24 and actively manage the nation’s finances to ensure government debt stabilizes at 87.5% of gross domestic product in three years. If it fails to do that, debt will exceed 140% of GDP by the end of the decade, the Treasury said last week.

The planned fiscal consolidation would require raising an...

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