FULL ADDRESS | 2020 medium-term budget policy statement

The government is projecting tax increases of R5bn in the next financial year as decreasing tax revenue and increasing debt to fund high spending bite.

It is also warning that SA could default on its sovereign debt repayments if urgent spending cuts – including a drastic reduction in the public sector wage bill – are not implemented immediately.

In its review of the medium-term adjusted budget, the National Treasury said it was working to contain public spending which has increased by 4.1% annually over the past decade.