BASIC EDUCATION
GAVIN KEETON: School initiatives in Grahamstown show the way forward
The budget was a sober reflection of almost a decade of fiscal mismanagement. Years of excessive government spending, feeble economic growth, widespread corruption and a related weakened capacity for tax collection combined to create a situation in which painful cuts in spending and increases in taxes were unavoidable. The government is betting that the negative short-term implications for economic growth will be outweighed by greater consumer and investment confidence following the resignation of president Jacob Zuma. But even the increased receipts from value-added tax and personal taxes will not generate enough funds to meet planned needs. Future government spending has been cut by R85bn over the next three years. Increased spending will only become possible if the economy grows rapidly for several years.
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