DUMA GQUBULE: Investment needed, not bailouts
The idea that state spending on infrastructure drains the fiscus is a sign of economic illiteracy
13 June 2023 - 05:00
In a recent presentation to parliament, public enterprises minister Pravin Gordhan said the government had spent R234bn on “bailouts” to state-owned enterprises (SOEs) and received dividends of only R1m over the past five years.
Eskom (R182bn) accounted for 78% of the bailouts. SAA (R37bn) accounted for another 16%. Since the gap between the airline’s revenues and costs was about R2bn a year from 2010 to 2017, it would probably have cost less to keep it operating. ..
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