ANTHONY BUTLER: Free higher education disregards fiscus
HIGHER Education and Training Minister Blade Nzimande came close to fiscal recklessness on Monday when he promised to avert fee increases for university students whose families earn less than R600,000 a year. He was in no position to accede to demands for "free higher education for all", and he will not be in such a position any time in the conceivable future.In a low-growth economy, trade-offs are especially hard. The Treasury’s dogged efforts to return SA to a sustainable fiscal path are already embattled. Global economic growth is weaker than anticipated. The South African economy has been hit by low commodity demand, an energy constraint, and high headline inflation. Drought, the depreciating rand and parastatal price rises will maintain these inflationary pressures.The government has already taken aggressive steps to increase revenue, raking back R7bn-R8bn this financial year from fiscal drag, and raising more than R10bn from fuel levy increases, excise duties and adjustments t...
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