Business News 25.10.2017 06:45 pm

SA’s debt service cost will increase to R233bn in 2020 – FF Plus

Freedom Front Plus leader Pieter Groenewald said he was disappointed Finance Minister Malusi Gigaba's maiden medium-term budget policy statement. Photo: Chantall Presence / ANA

Freedom Front Plus leader Pieter Groenewald said he was disappointed Finance Minister Malusi Gigaba's maiden medium-term budget policy statement. Photo: Chantall Presence / ANA

The party says the country is currently facing a huge problem of a debt service cost of R163 billion.

The Freedom Front Plus (FF+) on Wednesday expressed its disappointment in Finance MInister Malusi Gigaba’s medium-term budget policy statement, saying it would not restore business and consumer confidence which has deteriorated over the past year.

Speaking on the steps of the National Assembly shortly after Gigaba’s speech, FF+ leader Pieter Groenewald said while the minister was honest about the problems facing the South African economy, Gigaba said nothing new.

“It was quite disappointing to listen to the Minister for Finance, he identified the real problem and that is that we have no economic growth, we need that, but what they said after was that they have adjusted their prediction down to 0.7 percent,” Groenewald said.

“If we look at the national debt, it’s a huge problem and only the cost to service the debt is R163 billion for this year and will increase by R233 billion by 2020,” said Groenewald.

He added that if South Africa managed to attract more investors the economy would grow and more jobs could be created.

“We are a country deep in debt,” he said.

 

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