Cape Town – South Africa has been praised by the International Monetary Fund for its strong fiscal transparency, ranking among the top three countries globally.
“South Africa has many elements of sound fiscal transparency practices. Based on an assessment of fiscal transparency practices against the IMF’s Fiscal Transparency Code, South Africa’s practices are strongest in fiscal reporting, followed by fiscal forecasting and budgeting, and weakest in fiscal risk analysis. There is room to improve South Africa’s fiscal reporting, budget transparency and management of fiscal risks,” IMF’s Fiscal Transparency Evaluation Report said.
National Treasury welcomed this recognition, highlighting the importance of transparent fiscal policy for macroeconomic stability.
“A predictable and transparent fiscal policy underpins macroeconomic stability. The IMF’s Fiscal Transparency Evaluation Report notes a strong performance in fiscal reporting and budget transparency,” National Treasury said on Tuesday.
While South Africa excels in fiscal reporting and budget transparency, the IMF report suggests improvements in areas such as fiscal reporting expansion, precise budget forecasting, and enhanced fiscal risk analysis.
“Work is underway on all these areas. Government is committed to addressing these areas to enhance fiscal credibility and ensure continued transparency and accountability in the management of public finances,” National Treasury said.
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Compiled by Betha Madhomu
