Locked
Treasury warns of R2-trillion loss over next decade, with 20% of tax paying back debt
Treasury has released its Medium-Term Expenditure Framework guidelines which detail much-needed steps to curb spending and steady debt.
By Jarryd Neves
"But debt is our weakness. We have accumulated too much debt; this downturn will add more. This year, out of every rand we pay in tax, 21 cents goes into paying the interest on our past debts."
Worrying words from the South African Finance Minister, Tito Mboweni. But how did we get to that point? How is it possible that for every R1 paid in tax, more than 20% is going into just paying the interest off on past debt.
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