At first glance, it looks a good thing that the Treasury has wrestled the government back onto the track of fiscal consolidation. It is certainly a positive development that yet another grab at power and resources by President Jacob Zuma, whose intention had been to announce free higher education ahead of the ANC national conference, has been neutralised by the pushback from society and from the market. That plan, although still in play, is on the back burner for now. Since the disaster of the medium-term budget policy statement a month ago, Finance Minister Malusi Gigaba and top Treasury officials have been in intense interaction with investors and ratings agencies. In attempting to stave off a double downgrade, Gigaba — with the consent of Zuma — promised to bring in a new deal in February that would involve slashing budgets and raising taxes. The plan became public knowledge on Monday in a statement issued by the Presidency, promising to restore fiscal sustainability and stabilis...

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