Now that a VAT increase has been ruled out, the finance minister must find another way to plug a R75bn gap or risk collapsing public services and investor confidence

Debt service costs and civil servant wages account for 61% of total government spending, reducing budgets for, say, education, infrastructure and health

However, the treasury still expects the country to achieve a main budget surplus from this year onwards

Finance minister warns that government’s increased debt could mean ratings agencies downgrade the country’s credit worthiness to junk