To gain a greater understanding of the impacts of government debt and fiscal policy on the global economy, KPMG International completed a robust analysis of the fiscal policy settings of 19 countries within the G20 across the budgetary, economic and intergenerational cycles.
The findings highlight the imperative for a disciplined approach to fiscal sustainability. In the report, KPMG develops an outline of what a competent and robust fiscal sustainability framework for the public sector might look like, providing a practical and achievable road map to help governments around the world create a more sustainable, effective and efficient national economy for generations to come.
The analysis also includes an online comparison tool which provides key fiscal data and trends for the 19 countries studied in this report, with the capability to compare up to three countries at once.
Specific to South Africa, the country’s economic cycle data shows that it has maintained both a sustainable level of gross debt and net debt, reflecting the capacity of the South African government to have set a sustainable medium-term fiscal policy during the economic cycle. However, one of the key challenges of the South African economy remains the stubbornly high level of unemployment, which continues to play its part in social unrest and economic dislocation. South Africa’s budget cycle data also shows that it has maintained net fiscal lending/borrowing at sustainable levels.
Download the full report to find out more