A WEE DRAM
CHRIS GILMOUR: Borrowing ourselves into recession
We have become addicted to state spending, and will eventually become accountable for this, warns economist
With no increase in taxes in the recent budget, finance minister Tito Mboweni took many people by surprise. Economists had expected several tax hikes to bring in desperately needed money, but there were none. And there were even beneficial inflationary adjustments to personal income tax rates.
“Instead, he went for the option of spiralling borrowing and increasing the deficit,” says economist Dawie Roodt “We are living on overdraft and simply postponing the tax increases which will eventually have to come. Debt is getting completely out of hand, and debt-servicing costs are his fastest growing expenditure item.”