South Africa: Strengthening Fiscal Frameworks

The South African government has reaffirmed its commitment to stabilizing debt and is consulting on an appropriate fiscal anchor. The IMF’s Fiscal Affairs Department worked with the National Treasury to develop proposals for strengthening South Africa’s fiscal framework. A fiscal framework that incorporates a debt target and numerical fiscal rules would help support consolidation efforts aimed at rebuilding fiscal buffers. By improving fiscal credibility, it would also create the potential for ratings upgrades and reduced borrowing costs, supporting confidence and economic growth. Strengthening supporting public financial management frameworks would underpin successful implementation.