If not yet at 100% of GDP, South Africa's debt soon will be. 

The estimated tax shortfall for fiscal 20/21, is about R300 billion, due to Covid-19 induced reductions in output.

That is about a 10% shortfall on collections for the year. 

Against that the state has pledged R500-billion on stimulus packages, although not all of that is new debt. 

But where it isn't funds have been reallocated from other priorities, so that puts significant projects on hold. 

Anyway, the IMF have now provided a $4.3 billion low interest loan, to help fund Covid-19 responses. 

The New Development Bank have added a further $1 billion. That raises nearly R90 billion is additional debt. 

The concern many opposition parties are voicing is around the risk of such funds being looted. 

Treasury is adamant that adequate controls are in place, and I am inclined to trust Tito Mboweni in that. 

Other critics are asking why we need the loans when a R500 billion stimulus package is in place. 

The answer is simply that the loans are for Covid-19 programs, while the stimulus is designed to uplift the economy. 

But all of this will impact on our sovereign debt position and will hang over us for years to come. 

(c) Peter Missing @ me2u2all.blogspot.com