Cut spending and make a plan, says research group
The amount owed by SA has grown so enormously over the past decade that economic growth has been compromised, report states
Government must rein in debt and restore fiscal stability by cutting its spending if it is to stand a chance of restoring growth to the economy, says a new policy paper by the Centre for Development Enterprise (CDE).
In a detailed examination of SA’s public finances, the report titled “Running out of Road” says that SA’s debt has grown so enormously over the past decade that economic growth has been compromised as government resources are increasingly consumed by debt service costs. While the growth in the debt burden is partly a result of slow growth, debt itself has now become a drag on growth, creating a vicious circle...
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