Budget lacks specific details on cutting deficit - Moody's

Pulse Staff 05:57 - 25 February 2016

A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York, February 6, 2013. REUTERS/Brendan McDermid

"Moreover, Treasury's revised growth forecasts of 0.9 percent and 1.7 percent are still slightly more optimistic than Moody’s own predictions of 0.5 percent for 2016 and 1.5 percent,"

South Africa's budget aims to quickly consolidate spending by cutting a large public sector wage bill, but has not identified specific revenue measures to achieve smaller deficits, Moody's said on Wednesday.

"Moreover, Treasury's revised growth forecasts of 0.9 percent and 1.7 percent are still slightly more optimistic than Moody’s own predictions of 0.5 percent for 2016 and 1.5 percent," Moody's senior vice president Kristin Lindow said in a statement.