A debate is raging between the National Treasury and a number of economists over the treatment of the R254bn Eskom debt relief package in the 2023 budget and whether it masks South Africa’s true fiscal position.
The Treasury’s detractors say the new approach of classifying cash payments to Eskom not as an above-the-line expenditure item but as a below-the-line debt redemption departs from good accounting practice, renders the bailout invisible in terms of the deficit, and consequently flatters the fiscal consolidation apparent in the budget...
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