Economics

South African Budget Signals Debt Trap Ahead

  • Nation paying price for meltdown at the state power utility
  • Treasury cuts forecast for growth, tax-revenue collection
The Eskom Grootvlei coal-fired power station.Photographer: Waldo Swiegers/Bloomberg
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South Africa is heading for a debt trap as bailouts for the embattled state power utility drain the government’s coffers and anemic economic growth weighs on tax revenue.