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Pretoria - The public sector borrowing requirement, which includes borrowing by state-owned enterprises to finance infrastructure spending, has also been revised upwards, along with government’s deficit.
The budget review said the public sector borrowing requirement continued to be higher than borrowing by general government, reflecting borrowing by public enterprises to finance capital expenditure.
The public sector borrowing requirement was expected to be 10.5% of gross domestic product (GDP) in 2010/11, higher than the 10.1% projected in the mini budget.
The requirement would decline to 6.3% of GDP in 2013/14, largely as a result of a fall in the government deficit.
The largest contributors to government’s capital infrastructure programme were Eskom and Transnet. Borrowing by these enterprises would continue to support their capital programmes.
Relatively few municipalities borrowed funds to finance their capital budgets; those that did were scaling back their borrowing plans because they had reached or exceeded prudential limits.
The public sector borrowing requirement is comparable to the US budget deficit, because there are few state-owned enterprises in the US.
At 10.5% this fiscal year, the requirement is in the same range as the US, where severe concern has been expressed over the size of the fiscal deficit.
- Fin24
The budget review said the public sector borrowing requirement continued to be higher than borrowing by general government, reflecting borrowing by public enterprises to finance capital expenditure.
The public sector borrowing requirement was expected to be 10.5% of gross domestic product (GDP) in 2010/11, higher than the 10.1% projected in the mini budget.
The requirement would decline to 6.3% of GDP in 2013/14, largely as a result of a fall in the government deficit.
The largest contributors to government’s capital infrastructure programme were Eskom and Transnet. Borrowing by these enterprises would continue to support their capital programmes.
Relatively few municipalities borrowed funds to finance their capital budgets; those that did were scaling back their borrowing plans because they had reached or exceeded prudential limits.
The public sector borrowing requirement is comparable to the US budget deficit, because there are few state-owned enterprises in the US.
At 10.5% this fiscal year, the requirement is in the same range as the US, where severe concern has been expressed over the size of the fiscal deficit.
- Fin24
