TITO MBOWENI: Structural reforms — not spending — are the best way to achieve growth
Changing the underlying structure is the best way to enable sustainable and inclusive growth in the long run
The supplementary budget puts forward a path to restore the sustainability of the fiscus, without compromising on important social programmes. The belief that we can spend our way out of low growth is misguided.
In considering our economic future beyond Covid-19 most economists agree that the best way to reduce SA’s debt burden is to grow the economy. Higher, more inclusive growth will be accompanied by higher investment and job growth that will place the economy on a sustainable path. It allows us to reduce debt service costs as a proportion of our spending, direct resources towards economic activities that can support long-run growth, and empowers the state to take care of the most vulnerable in our society...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.