DA to table bill aimed at reducing ballooning govt debt

The Fiscal Responsibility Bill aims to introduce a fiscal rule to reduce the national debt and debt service costs in South Africa.

FILE: DA MP David Maynier pictured in Parliament on 19 November 2014. Picture: EWN.

CAPE TOWN - The Democratic Alliance (DA) is preparing to table legislation aimed at limiting the amount of debt the government will be allowed to rack up.

DA Member of Parliament David Maynier unveiled the details during the debate on National Treasury’s budget vote on Tuesday.

The Fiscal Responsibility Bill aims to introduce a fiscal rule to reduce the national debt and debt service costs in South Africa.

Maynier says national government debt is set to balloon to R3.3 trillion or 52% of GDP in 2021.

“There is a question mark, given the pressure on spending, about whether national debt, measured as net loan debt, will actually stabilise at 53.2% of GDP in 2023/24. But if it does, we will be spending a staggering R277 billion on debt-service costs in 2023/24”.

Maynier says the bill will shortly be gazetted for public comment.

(Edited by Zamangwane Shange)