South Africa borrowing R1.5 billion per day

Finance Minister Enoch Godongwana said government spending has exceeded revenue since the 2008 global financial crisis, which puts it on the road to a fiscal crisis.

Godongwana revealed the country’s dire finances during his medium-term budget policy statement, released on Wednesday.

These rising annual budget deficits have reached an extent where the government will borrow an average of R553 billion annually over the medium term.

Put another way, it means that the state will borrow R1.5 billion per day to fill the gap between revenue and expenses.

Source: Daily Investor