Opinion
Tough fiscal decisions are required, not reckless financing proposals
23 May 2021 - 00:00
In "It's not the wage bill that's the problem, it's the austerity budget" (https://www.timeslive.co.za/sunday-times/opinion-and-analysis/2021-05-16-its-not-the-wage-bill-thats-the-problem-its-the-austerity-budget/) in the Sunday Times of May 16, Duma Gqubule argues that fiscal consolidation (reducing spending or raising taxes to close the budget deficit) is unnecessary. Much easier, he argues, to adopt a new paradigm in which the Reserve Bank funds the deficit directly by printing money, or where the Government Employees Pension Fund (GEPF) finances the deficit by buying government bonds...
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