Question NW2869 to the Minister of Finance
04 October 2023 - NW2869
Manyi, Mr M to ask the Minister of Finance
What are the full details of the (a) total amount of the public debt of the Republic and (b) debt of (i) state-owned companies and (ii) municipalities that have been underwritten by the national fiscus as a percentage of Gross Domestic Product?
Reply:
(a) Gross debt of the national government is disclosed in Table 7.7 of the 2023 Budget Review. It is estimated to reach R5.06 trillion or 72.2 per cent of GDP by the end of the 2023/24 Financial Year.
(b) (i) Government guarantee exposure to state-owned companies is disclosed on Table 7.10 on page 91 of the 2023 Budget Review, and these are explicitly underwritten. Other contingent liabilities are included with the provisions in Table 7.11 on page 92 of the 2023 Budget Review.
(ii) There is no debt (borrowing) or loans taken up by municipalities that have been underwritten by the national fiscus. Chapter 6 of the MFMA sets the legal framework that enables municipalities to take their own decisions regarding borrowing. Specifically, sections 50 and 51 of the MFMA deal with municipal guarantees and national and provincial guarantees.
This decision-making process for Municipal Councils were empowered by the Amendment to the Constitution of the Republic, in section 230A. Therefore, Municipalities borrow on the strength of their own financial standing and status.