The International Monetary Fund has called on the South African government to prioritise the reduction of its wage bill and make funding to state-owned enterprises conditional, among other measures to reduce borrowing needs in future. “While phasing out Covid-19 outlays once the pandemic subsides, we encourage the government to make transfers to SOEs conditional on meeting ambitious, but realistic performance targets; rationalise compensation; dismantle ill-targeted subsidies; and improve enforcement of tax compliance,” Fin24 quotes the IMF as saying, explaining that these measures would contribute toward reducing sovereign borrowing needs and “preserving fiscal space”, so funds can be directed toward infrastructure, health, education and social protection.