SOUTH African government debt neared 100% of the National Treasury’s forecast for the fiscal year through March 2022 within seven months, heightening the risk that liabilities may overshoot official estimates.
Gross debt amounted to R4.2-trillion, or 97.3% of the government’s estimate by October 31, according to the South African Reserve Bank’s Quarterly Bulletin published on Wednesday.
The National Treasury revised its debt projection for the current fiscal year to R4.31-trillion rand, or 69.9% of gross domestic product, in last month’s medium-term budget policy statement from its February estimate of R4.38-trillion.
Central bank data shows gross debt increased by 12% year-on-year to R4.16-trillion, or 68.6% of GDP, as at September 31.
The surge reflected a significant increase in the outstanding balance of domestic debt, which accounted for more than 90% of total loans, the Pretoria-based Reserve Bank said.
Foreign debt obligations declined over the same period, it said.
Surging debt and debt-service costs,
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