25/10/2017 13:21 BST | Updated 25/10/2017 13:22 BST

These Are Our Biggest Threats, Says Treasury

We’re in trouble, and this is what we should watch out for:

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Malusi Gigaba, South Africa's finance minister.

The biggest threats to the fiscus in the coming years, according to National Treasury:

  1. The economy and revenue could underperform projections. The GDP growth outlook may be improving, but the relationship between growth and revenue collection could deteriorate further.
  2. Strains and imbalances within public finances may become more pronounced. The public-sector wage bill has increasingly crowded out other spending and limited government's ability to increase public employment.
  3. Debt-service costs are set to absorb a rising share of revenue.
  4. Several years of fiscal restraint have left funding gaps in both infrastructure and social services, reflected in the build-up of unpaid accounts and financial imbalances.
  5. Continued financial deterioration of major state-owned companies is a clear and substantial danger to the public finances.

Source: Budget Review, National Treasury.