South Africa takes the first step towards national debt stabilisation as Fiscal Responsibility Bill is published
8 March 2020
The Democratic Alliance’s proposal to introduce a fiscal anchor to stabilise national debt reached a significant stage on Friday, when our notice of intention to table the Fiscal Responsibility Bill was published in the Government Gazette for public comment. The Bill will be tabled in Parliament this week.
We now call on all South Africans to submit their comments on the Bill which, if passed, will limit any of government’s ability to borrow more. This will help reduce national debt and the associated debt service costs.
The Fiscal Responsibility Bill provides for:
a fiscal rule prescribing that, for each financial year from 2020/21 to 2023/24, net loan debt expressed as a percentage of GDP must not be more than it was the previous year.