Finance minister Tito Mboweni says critics of his supplementary budget are driven by a “misguided” belief that SA can borrow and spend itself into prosperity, despite overwhelming evidence to the contrary.

In an article in Business Day (https://www.businesslive.co.za/bd/opinion/2020-07-14-tito-mboweni-structural-reforms-not-spending-are-the-best-way-to-achieve-growth/), Mboweni said growth in government spending in recent years has instead raised risks for the economy and increased SA’s risk premium. That has boosted the country’s borrowing costs, discouraged private-sector investment, and constrained the ability of the government and state-owned enterprises to spend on infrastructure, he said.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now