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The editor is too credulous (“The right noises, no surprises, spot on from script”, November 11). The government’s plans for fiscal consolidation are premised on spending reduction and rapid economic growth that will not occur.
Yes, through a technicality the debt-to-GDP ratio is lower than before, but the trend has not changed, and that points firmly into “unsustainable” territory, where a disturbance on international junk bond markets spells catastrophe for us. And there simply is no list of “structural reforms”, there are only smoke-and-mirror reforms while all the disastrous ANC policies that hold investment, growth and employment down remain as firmly in place.
If this government starts to talk seriously about regaining investment-grade ratings from the ratings agencies, and acts accordingly, then you can start praising its fiscal management acumen. Until then, it’s all just lipstick on a pig.
At the moment the government’s strategy appears to pretend that the ratings agencies no longer exist. But we don’t have to go along with that spin if we have independent minds and care about our country.
Mani None Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments. Letters of more than 300 words will be edited for length. Send your letter by email to letters@businesslive.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Lipstick on a pig
The editor is too credulous (“The right noises, no surprises, spot on from script”, November 11). The government’s plans for fiscal consolidation are premised on spending reduction and rapid economic growth that will not occur.
Yes, through a technicality the debt-to-GDP ratio is lower than before, but the trend has not changed, and that points firmly into “unsustainable” territory, where a disturbance on international junk bond markets spells catastrophe for us. And there simply is no list of “structural reforms”, there are only smoke-and-mirror reforms while all the disastrous ANC policies that hold investment, growth and employment down remain as firmly in place.
If this government starts to talk seriously about regaining investment-grade ratings from the ratings agencies, and acts accordingly, then you can start praising its fiscal management acumen. Until then, it’s all just lipstick on a pig.
At the moment the government’s strategy appears to pretend that the ratings agencies no longer exist. But we don’t have to go along with that spin if we have independent minds and care about our country.
Mani None
Via BusinessLIVE
JOIN THE DISCUSSION: Send us an email with your comments. Letters of more than 300 words will be edited for length. Send your letter by email to letters@businesslive.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
EDITORIAL: The right noises, no surprises, spot on from script
Samwu welcomes allocation of R450bn to help municipalities deliver basic services
Effects of structural reform will take time
WATCH: Enoch Godongwana delivers maiden medium-term budget
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