We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

The budget in effect upends 25 years of using government spending as a core tool for redistribution. It cuts basic services for the poor, most obviously by shrinking education, housing and social grants, while lowering income taxes for the rich. And it isn’t even good at promoting economic recovery. True, it prioritises vaccines and increased public investment, but cutting spending in real terms is unambiguously procyclical.

A true reconstruction budget would promote programmes that address SA’s profound inequality, which continues to stymie growth and stoke vicious social divisions, corruption and crime. The main drivers of inequality are persistently poor education in working-class communities; disparities in asset ownership, especially small businesses; deeply inequitable work organisation; and the legacy of apartheid spatial restrictions that leaves most poor households far from economic opportunities. These ills all contribute to extraordinarily high joblessness as well ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now