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South Africa doesn't have a budget

The article from BusinessTech discusses the dire financial situation of South Africa as highlighted by Finance Minister Enoch Godongwana in his Medium-Term Budget Policy Statement (MTBPS). It points out that South Africa does not have a budget in the traditional sense due to its inability to fund its expenditures through revenue alone. The government's financial strategy has shifted towards managing cash flows rather than budgeting, with significant reliance on borrowing to cover shortfalls. Key issues include a ballooning public sector wage bill, increased social spending, and a sharp decline in tax revenue, which together have led to a projected increase in the budget deficit. The article also mentions the government's plan to cut spending by R21 billion in the current year, with further reductions planned, and the necessity to borrow an additional R56.8 billion. This situation has led to concerns about the sustainability of South Africa's debt, with the debt-to-GDP ratio expected to rise, prompting discussions on the need for structural reforms and better financial management.

Read the Full BusinessTech Article at:
[ https://businesstech.co.za/news/budget-speech/816677/south-africa-doesnt-have-a-budget/ ]