Kristin Lindow, Senior Vice President, Moody’s said: “In Moody’s opinion, South Africa’s 2016/17 budget aims at delivering faster fiscal consolidation in part by cutting the large civil servant wage bill while preserving growth-supporting capital spending.”
“Moody’s also views the planned tax increases as well-targeted given the weak economic backdrop.”
“However, the specific revenue measures that will accomplish the smaller deficits predicted for 2017/18 and 2018/19 have not yet been identified. Moreover, Treasury’s revised growth forecasts of 0.9% and 1.7% are still slightly more optimistic than Moody’s own predictions of 0.5% for 2016 and 1.5% for 2017.”
Source: African News Agency (ANA)
