BIS Review 104/2000  8  Let me start with sound macroeconomic policies. Sound macroeconomic policies basically mean a sustainable fiscal balance and a supportive monetary policy. The pressure on the public finances has been growing in recent years and the budget deficit has been edging up and public debt has increased as a result.
Among the new challenges that will affect the budget, is the reduced SACU receipts over the next few years. As our fiscal policymakers are aware, bold measures are needed to make sure public finances are put on a sustainable path over the medium term. These will include reduced expenditure on recurrent expenditures, especially on personnel costs, and a broadening of the tax base.