Treasury rules to end municipal splurges will be tested by culture of entitlement
Having Tito Mboweni and Nkosazana Dlamini-Zuma in office should go a long way towards ensuring that the regulations are adhered to
As last week’s GDP figures made abundantly clear, SA’s economy is in extremely poor shape, and the fiscus is in an especially difficult position. It needs to somehow do more with less; stimulate the real economy with productive spending but within tighter budget constraints.
Local government is also in a tight spot. Politicians will want to deliver more and better services to increasingly picky voters in the run-up to the 2021 local government elections. But it needs to do this credibly; overcoming the stench of corruption as the Hawks swoop on a number of SA’s municipalities, including one of its biggest, eThekwini.