LUNGISA FUZILE: With hard work and heavy lifting, R100bn in spending cuts will suffice
Many of the reforms SA desperately needs have the approval of business and the cabinet
As the country’s Covid-19 peak looms, SA is entering a critical period. The government has taken steps to ease the burden on the health-care system and save lives. We must also use this time to urgently lay the foundation for the country’s economic recovery, without which SA runs the real risk of unsustainable debt and all the consequences that manifest from that.
Ratings agencies have been unanimous in expressing doubt over SA’s ability to stabilise debt as per the plan unveiled by finance minister Tito Mboweni in June. While many analysts agree with the ratings agencies, a few think spending cuts totalling just more than R100bn over the remainder of this year are feasible — and I agree with them. Notwithstanding the opinions of ratings agencies and analysts, with some hard work, heavy lifting and difficult decisions, it is achievable — the outcome can be changed...
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