Tax & Spend
IMF Urges South Africa to Set Planned Fiscal Rule Up for Success
Mismanagement and the looting of state power utility Eskom Holdings SOC Ltd and freight-rail and ports operator Transnet SOC Ltd led to major taxpayer bailouts.
Photographer: Waldo Swiegers/BloombergSouth Africa’s plan to control public finances via a so-called fiscal rule will help restore policy credibility but it will need significant support to succeed, according to the International Monetary Fund.
The National Treasury announced last month it would proposed binding guidelines by October to keep public finances in Africa’s largest economy on a sustainable path by introducing a principles-based fiscal anchor.