The National Treasury’s latest projections of economic growth and government debt show that SA is on an unsustainable path, and that urgent, interventions are needed to lift the country out of the low-growth trap it finds itself in.

In his medium-term budget policy statement, finance minister Tito Mboweni acknowledged as much as he delivered a sobering set of forecasts. Tepid economic growth and increased spending on overindebted state-owned enterprises (SOEs), mainly Eskom, means the budget deficit is expected to remain at more than 6% for several years.

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