Abstract
Public debt is often a country’s largest liability; this is predominantly true
in developing countries, where a significant amount of national revenue
is used in repaying such debt. It is evident that public debt is a major
concern in South Africa, especially with the slow economic growth rate
being experienced and the high rate of unemployment. It is important that
public debt is managed in an appropriate, effective and efficient manner.
This involves the crucial role of the National Treasury and it being
equipped with knowledgeable and skilled personnel, having strict adherence
and insight into financial legislation; as well as ensuring proper control
and accountability. According to the Public Finance Management Act
29 of 1999, the National Treasury was established to ensure control and
appropriate financial management at both national and provincial government.
The National Treasury is responsible for control over all the assets,
revenue, expenditure and liabilities of government. However, in order to
achieve this, challenges can be experienced by the National Treasury and
if not dealt with appropriately may cause a country to fall into recession
or even worse, bankruptcy.
In light of the above, this article seeks to explore the challenges experienced
by the South African government in the management of its public
debt. It will also consider measures/methodologies that can be identified
when addressing these challenges. Specifically emphasis is placed on the
role of the National Treasury in this regard.