South Africa's fiscal policy is underscored by countercyclicality, debt sustainability and intergenerational fairness. South Africa's spending continues to support the economy during downturns, even if revenue is insufficient and the accumulation of debt is reversed to build fiscal space as the economy recovers. However, it has to be ensured that debt remains under control so that government can continue to borrow at reasonable rates. It also follows that debt is being stabilised as a share of national income by narrowing the budget deficit. It is also critical that the impact of public spending is improved by prioritising capital investment and reducing waste and inefficiencies.