ANALYSIS: Will a debt rule help stabilise SA's fiscus?

A bill proposing a cap on debt in order to stabilise the fiscus will not address fiscal problems and risks further dramatic cuts in expenditure, according to a Treasury official.

The proposed fiscal responsibility bill was introduced to the Standing Committee on Finance (SCoF) by DA MP Geordin Hill-Lewis last year, this as the country has a debt burden of about R4 trillion, or under 80% of GDP. Debt servicing costs are the second-largest budgetary item.