Budget to reign in spending – Analysts

The 2013/2014 national budget is expected to reign in public expenditure as there exists little room for government to increase its debt levels, analysts have agreed.

Patrick Britz, an Economist with Capricorn Asset Management said while the last two budgets have been expansionary in nature, aligned with the rolling out of the TIPEEG programme – adopted to counter the global economic slump and shield the domestic economy from the worst of the global financial crisis – over the last year or so, the domestic economy has been healthy.
He said a slight reduction in this years’ budget will not be a surprise as there exists no further need to increase the countries debt levels. Britz said:“As it stands, government debt levels are on steady ground ( at roughly 26% of GDP) and government will wish to keep it that way.”
Sanlam Investment Management CEO, Tega Shiimi ya Shiimi believes the country has used the fiscal space it had leading up to the 2012/13 budget. He said for the country to maintain its sovereign debt rating, the debt ratio should not be allowed to stray too high.