Too many red lights flashing on economic dashboard
Without a concerted effort to lift business and household confidence, the only way is down
The medium-term budget policy statement (MTBPS) provided a sobering but realistic assessment of government finances, especially the rapid and unmitigated deterioration in key fiscal parameters during recent years. More importantly, it revealed further deterioration is likely, amid a looming fiscal debt trap and more credit rating downgrades, unless significant changes occur.
Three years ago the MTBPS projected that by 2019/2020, government revenue would reach R1.67-trillion, the budget deficit would improve to a mere 2.5% of GDP, gross debt would total R2.87-trillion, or 52.3% of GDP, and SA’s real annual GDP growth would exceed 2%...
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