EDITORIAL: Painting a way out of a corner
Better increase taxes now than add to a debt level that looks dangerously high
In the 2017-18 national budget, Finance Minister Pravin Gordhan made a grand attempt at achieving three key goals. Firstly, to create a credible budget that authentically fits into SA’s real economic predicament. Secondly, to reappropriate the debate on "radical economic transformation" so that it becomes not a statement of angry rhetoric or a sectional threat but an encompassing invitation to participate in broad social wellbeing. And, thirdly, to try to set the stage for a new approach to economic management that stretches beyond the government being a "transfer" institution into becoming a catalyst for a functional and just society. These are ambitious aims. How did he do? On the first issue, extremely well. The Treasury finds itself in the painful bear hug of a low-growth squeeze. Every year for the past five years, economic growth has declined. The implications of a low and declining growth trajectory complicate the Treasury’s position. But clearly, by starting from the nonnego...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.