Mmegi

Rolling deficits push budget into tricky waters

Mountains to climb, rivers to cross: Gaolathe is steering the economy through choppy waters PIC: KENNEDY RAMOKONE
Mountains to climb, rivers to cross: Gaolathe is steering the economy through choppy waters PIC: KENNEDY RAMOKONE

The deficits for the current financial year and the next are both far beyond the limits government set for itself. The Finance Ministry is banking on greater spending efficiencies backed by renewed political will to steer a path to stability, but fears abound. MBONGENI MGUNI writes

The golden rule of debt is that you should only borrow what you can afford to pay. One of the country’s financial regulators requires lending institutions to warn clients that “borrowing more than you can afford to repay could lead to severe financial difficulties”.

Vice President and Finance Minister, Ndaba Gaolathe’s inaugural budget speech indicated a forecast deficit this financial year of P24.7 billion and another projected shortfall of P22.1 billion for the 2025-26 financial year.

Editor's Comment
Makgekgenene played her part

“Ignore the noise, focus on your work”- AnonymousAs the DG of such a controversy-ridden institution, you really played your part in the fight against corruption and economic crime. Your stay at the helm of the DCEC was quickly paying dividends under your stewardship. During your tenure, there was a lot of action as those caught on the wrong side of the law were brought to court regardless of their economic or political status. We have learnt...

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