Cape Town - Economist Arthur Kamp is of the view that some of the key building blocks are falling into place to return South Africa to fiscal sustainability.
With regard to the increase in interest spending he said: “You can’t do much about interest spending in the near term. Our interest bill in the past fiscal year is going to be close to R150bn, compared to R50bn in 2009/2010.”
Aside from interest payments, Kamp predicts that the largest spending will take place on post-school education, basic education, health and the social protection bill.
He said it is thought that Finance Minister Pravin Gordhan will have to rein in on the public sector wage bill and defence spending.
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