Question NW3833 to the Minister of Finance
11 December 2023 - NW3833
Loate, Mr T to ask the Minister of Finance
(1)Whether he has found that the Government is approaching a period of elevated redemptions requiring the repayment of a significant amount of government debt that will have reached its maturity date; if not, what is the position in this regard; if so, (a) which debt was reaching maturity between the latest specified date for which information is available and 31 March 2024, (b) what will be the amount of the total debt that will have to be redeemed by that date, (c) will the specified debt be inclusive of the debt incurred on behalf of Eskom and (d) in which strategic manner will the Government secure the funds to honour its debt on maturity between the latest specified date for which information is available and 31 March 2024; (2) whether the Government is considering an increase in tax to meet its fiscal obligations; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
1. Table 3.7 (below) of Chapter 3 of the MTBPS provides a breakdown of redemptions for the current year and over the medium term. (a)(b) Government will redeem debt of R155.5 billion in 2023/24, (c) R78 billion has been penciled in for Eskom in 2023/24 (d) the gross borrowing requirement will be raised through the issuance of domestic long term loans, domestic short term loans, foreign loans as well as the drawdown of cash balances (refer To table 3.7 below).
2. Chapter 3 of the 2023 MTBPS states: “... the Minister of Finance will propose tax measures to raise additional revenue of R15 bliion in the 2024 Budget”. In this regard, Budget 2023 will provide details fo measures to be implemented.