We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

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. ..

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 articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

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

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.