Browsing by Author "Biggs, Michael Llewellyn"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Open Access
    Does South Africa's government debt threaten the sustainability of fiscal policy?
    (1996) Biggs, Michael Llewellyn; Abedian, Iraj
    The South African government debt has risen alarmingly over the last decade, with the debt-to-GDP ratio increasing from 33% in 1985 to 57% in 1995. These debt movements, combined with historically high conventional deficits equal to 9.0% and 9.8% of GDP in 1993 and 1994 respectively, have cast doubt on the solvency of government. This paper considers the issue of government solvency by focusing on two questions. Firstly, "Are present fiscal policies sustainable?", and secondly, "What are the limits to future fiscal policy if government solvency is to be maintained?"