After a shaky start with three runs at the Budget earlier this year, the Government of National Unity seems to have found its way to common ground with the Medium Term Budget Policy Statement this week.

Kicking off the media briefing, Deputy Finance Minister Ashor Sarupen noted that South Africa's economic outlook is on an upward trend, with the government meeting fiscal targets and economic growth of 1.8% per year expected over the next three years.

"The reliability of Eskom has improved dramatically while Transnet has stabilised port volumes. The good news is that the healthier public finances will benefit South Africa both now and in the future. Fiscal discipline builds credibility and even in a low growth environment, we are on track to meet our targets," he said.

In his speech, Finance Minister Enoch Godongwana said the strategy for faster growth and healthier finances continues to be anchored by four pillars:

• The first is maintaining macroeconomic stability;
• The second is implementing structural reforms;
• The third is building state capability; and
• The fourth is supporting growth-enhancing infrastructure.

Debt down

South Africa's debt service costs now cost 21 cents of every rand in revenue, while the primary fiscal surplus is set to grow over...