Govt debt at 50% of GDP: Gordhan
South Africa owes its lenders R2.2-trillion.
This came out in this afternoon's budget speech - delivered in Parliament by Finance Minister Pravin Gordhan.
He says the country's debt is about 50% of Gross Domestic Product - but will stabilise at about 48% of GDP over the next three years.
"Interest payments are a rising share of expenditure, and by acting now to stabilize debt - we will ensure that future generations will not pay for today's expenses some 20 to 30 years ahead," he said.
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Gordhan also revealed how much we still need to borrow.
"The balance of R149-billion - or 3.1% of GDP - is the amount we need to borrow in 2017/ 18," he said.
The Finance Minister has also announced increases in various social grants.
These include:
- The old age grant will increase by R90 to R1600 for pensioners over the age of 60, and R1620 for those over 75.
- The disability and care dependency grants also increase by R90 to R1600 a month.
- Foster care grants increase by R30 to R920 a month.
- The child support grant increases by R20 to R380 a month.
The allocations are as follows:
