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SA is in a high-unemployment, low-investment and low-growth trap. To address the problem, the government proposes budget cuts and austerity. The latest medium-term expenditure framework makes this unequivocally clear: it mandates that “any additional allocations proposed to a programme must be funded by a reduction in funding from another programme” referring to the expected cuts of 5% in 2020, 6% in 2021, and 7% in 2022.

Business Day (https://www.businesslive.co.za/bd/national/2019-08-22-prepare-to-slash-budgets-says-treasury/)  (https://www.businesslive.co.za/bd/national/2019-08-22-prepare-to-slash-budgets-says-treasury/)noted that “If expenditure cuts of this magnitude are made, they would be the deepest since the infamous Growth Employment and Redistribution budget stabilisation process in 1996.” These cuts will not be made to wasteful expenditure and corruption, instead it will be to key sectors such as education and healthcare. ..

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