Business warns Cyril Ramaphosa on runaway debt
Cut spending or face IMF imposed austerity
President Cyril Ramaphosa’s management of the economy over the past 18 months has come under intense criticism by SA’s biggest business organisation, which says runaway government debt now poses the risk “of taking us all down”.
Business Unity SA (Busa) president Sipho Pityana says the economy is in a worse state than it was 18 months ago because of government’s reluctance to take the hard decisions required to stabilise public finances and create conditions that are more conducive to economic growth. Unless government itself acts to cut government spending, it will be forced into an austerity programme by the International Monetary Fund (IMF) when private lenders turn their backs on the country, Pityana says.