The ratings on the Republic of South Africa are supported by: Prudent fiscal policies, underpinned by budgetary and administrative reforms that have improved planning, accountability, and expenditure controls at all levels of government. National government deficits are projected to decline to 1.7% of GDP by 2004/2005, from the 2.1% budgeted for 2002/2003--a substantial improvement on annual deficits of more than 5.0% of GDP in the mid-1990s. General government debt is forecast to fall to less than 45% of GDP in 2002, which is in line with that of South Africa's 'BBB' category peers, and should decline further in the medium term with the sale of state assets. A relatively manageable external debt burden, which has helped to weather the periodic
