An alternative perspective on South Africa’s public debt, 1962-1994

Estian Calitz, Stan Du Plessis () and Franz Siebrits

No 19/2010, Working Papers from Stellenbosch University, Department of Economics

Abstract: The history of public debt reflects the cumulative effect of fiscal decisions and real outcomes in the economy. In the South African case the published record on public debt distorts the historical perspective on the associated fiscal decisions. This note shows the impact of adjusting the South African public debt on an accrual basis to take account of two major obligations assumed in the first half of the 1990s, namely actuarial pension fund deficits and government debt of the apartheid homelands. The adjusted series is less volatile and rose less steeply between 1989 and 1996 than the official, cash based debt series. Failing to account for the evolution of these obligations exaggerates the impression of weak fiscal discipline in the early nineties and exemplary fiscal prudence in preceding decades.

Keywords: South African public debt; fiscal discipline; accrual classification; pension fund deficits; sub-national debt (search for similar items in EconPapers)
JEL-codes: G23 H62 H63 (search for similar items in EconPapers)
Date: 2010, Revised 2010
New Economics Papers: this item is included in nep-afr and nep-his
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https://www.ekon.sun.ac.za/wpapers/2010/wp192010/wp-19-2010.1.pdf Revised version (version 2), 2010 (application/pdf)

Related works:
Journal Article: AN ALTERNATIVE PERSPECTIVE ON SOUTH AFRICA'S PUBLIC DEBT, 1962‐1994 (2011)
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