The cost of servicing our debt is eating our future
Government inaction risks condemning SA to growing progressively poorer
The medium-term budget policy statement (the so-called "mini budget") should be a wake-up call. It shows how unsustainable our current trajectory is: debt is rising, growth is falling, and there is no real plan to get the government's finances under control. "Hope," as finance minister Mboweni said, "is not a strategy." Unhelpfully, the mini budget provided neither.
By far the most shocking data in the mini budget shows the extent to which previous estimates of the sustainability of SA's fiscal policy understated the severity of the crisis...