LETTER: Emergency budget could be used to maintain demand and monetary stimulus
The Treasury’s supplementary budget risks crippling the economy further by reducing vital government emergency support measures
15 July 2020 - 17:54
Tito Mboweni's defence of his June 24 “supplementary budget” refers (Structural reforms — not spending — are the best way to achieve growth, July 14). This budget reduces to R36bn (or 2% of the February budget’s noninterest expenditure) government support for the SA economy during Covid-19.
Evidence and theory can help us understand why this budget is badly timed and one-sided. Instead, a combination of short-term spending measures and long-term debt reduction targets are needed to balance the economy’s growth path...
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