South Africa\u2019s finance minister warned that next month\u2019s budget will be a \u201cdifficult one\u201d as the nation\u2019s ability to service its growing debt remains a challenge.<\/p>\n\n\n\n
Enoch Godongwana will table the annual budget in late February when he will announce more details on the National Treasury\u2019s plans to arrest ballooning debt; he told Johannesburg-based broadcaster Newzroom Afrika on Monday.<\/p>\n\n\n\n
\u201cRight now, we have got a challenge because our growth levels are insufficient to be able to cope with higher levels of debt,\u201d he said. \u201cI will have more on this in the February budget next month. <\/p>\n\n\n\n
“I can tell you now, we are operating in a fairly constrained fiscal space, so the message we are likely to put across in February is going to be a difficult one.\u201d<\/p>\n\n\n\n
In his mid-term budget in November, Godongwana stressed the need to stabilize public finances and accelerate growth as the Treasury warned off a higher debt trajectory over the next two years. <\/p>\n\n\n\n
Ongoing power cuts and a logistics crisis continue to constrain economic growth in Africa\u2019s most industrialised economy.<\/p>\n\n\n\n
Next month\u2019s budget will come before South Africa\u2019s general election, which is expected to take place by August, and in which the ruling African National Congress will fight to hold on to the national majority it\u2019s had since coming to power three decades ago.<\/p>\n\n\n\n