DUMA GQUBULE: Treasury’s old medicine will make the economy even sicker
Tito Mboweni’s austerity plan tackles the crisis from the wrong angle
Finance minister Tito Mboweni’s neoliberal manifesto, a half-baked attempt to respond to growing public pressure for the government to develop a growth strategy, is the economic equivalent of putting petrol worth R50 into an empty tank. It will not shift the needle.
I predicted the last recession in 2018. I now believe the economy will enter into another recession during 2020 if the Treasury goes ahead with its plan to implement its R300bn austerity measures — more than 1% of GDP each year — over the next three years.