Editorial

Everyone else is making Covid sacrifices, and so should the bureaucrats

28 June 2020 - 00:03 By Sunday Times Editorial

As expected, finance minister Tito Mboweni delivered a sobering supplementary budget on Wednesday. If the numbers were bad in February, they are worse now. The economy will contract 7.2%, as per National Treasury estimations.

The revenue shortfall is a staggering R300bn, pushing the budget deficit for this fiscal year to 15.7%. Debt is expected to reach 87.4% of GDP in 2024, after hitting 81.8% in 2020, up from just over 65.6% predicted in February 2020. In every R1 South Africans pay in tax, 21c goes to pay the interest on past debt. Debt service costs stand at R236.4bn, up from R229.3bn just four months ago, and R184bn in 2018. They exceed our health spending...

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