NEWS ANALYSIS
Last week, the treasury flaunted the medium-term budget policy statement’s most credit-friendly highlights — the narrowing of the fiscal deficit and lower-than-expected debt levels in coming years.
But the proclaimed success of fiscal consolidation is somewhat eclipsed by what looks to be at least another three years of meagre economic growth, which will inevitably turn the heat up on future spending.
The glacial pace of South Africa’s growth underlines one of the major dilemma’s implicit in the government’s efforts to rein in public spending — that austerity comes at a cost to the economy.
The medium-term budget policy statement, tabled by Finance Minister Enoch Godongwana last Wednesday, shows that South Africa will not be spared the economic onslaught of the global downturn.
Support the journalism that helps you navigate your world
Looking for another offer?
Sarah Smit
Sarah Smit is a general news reporter at the Mail & Guardian. She covers topics relating to labour, corruption and the law.
press releases
Loading latest Press Releases…
