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An ANC supporter waves a flag at Mbombela Stadium in Mpumalanga, January 13. Picture: REUTERS/SIPHIWE SIBEKO
As Kabelo Khumalo reports, there is a dire need to cut public spending as the limitations of SA’s fiscal resources are becoming more and more apparent (“Red flag as budget deficit widens to 6% of GDP”, February 5).
But despite this urgent need it is unlikely that the government will do the hard and rational thing. The ANC is a populist socialist party at heart, and it excels at ignoring reality in favour of bribing the public while formulating grandiose and ultimately devastating policies.
Just look at National Health Insurance (NHI) and the plans to expand public healthcare. The public coffers simply can’t afford such a project. But the government doesn’t care. It will shoot private healthcare in the foot while spending money that doesn’t exist, creating incompetent public facilities that probably won’t work.
On top of this, regulations, labour overreach, BEE, load-shedding and socialist rhetoric continue to shrink our economy, leading to less and less tax revenue.
But the ANC doesn’t care. It wants to destroy the private sector because it is something it doesn’t control. It will not cut spending because it is, asKhumalo reports, an election year. And on top of that, I don’t think the ANC truly understands what debt entails and what a deficit means.
The solution to SA’s problems is rational policymakers who are willing to make spending cuts, deregulate and embrace a pragmatic and sound economic system. And if we want that, we’re going to need to vote for it.
Nicholas Woode-Smith Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published.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: ANC won’t cut public spending
As Kabelo Khumalo reports, there is a dire need to cut public spending as the limitations of SA’s fiscal resources are becoming more and more apparent (“Red flag as budget deficit widens to 6% of GDP”, February 5).
But despite this urgent need it is unlikely that the government will do the hard and rational thing. The ANC is a populist socialist party at heart, and it excels at ignoring reality in favour of bribing the public while formulating grandiose and ultimately devastating policies.
Just look at National Health Insurance (NHI) and the plans to expand public healthcare. The public coffers simply can’t afford such a project. But the government doesn’t care. It will shoot private healthcare in the foot while spending money that doesn’t exist, creating incompetent public facilities that probably won’t work.
On top of this, regulations, labour overreach, BEE, load-shedding and socialist rhetoric continue to shrink our economy, leading to less and less tax revenue.
But the ANC doesn’t care. It wants to destroy the private sector because it is something it doesn’t control. It will not cut spending because it is, as Khumalo reports, an election year. And on top of that, I don’t think the ANC truly understands what debt entails and what a deficit means.
The solution to SA’s problems is rational policymakers who are willing to make spending cuts, deregulate and embrace a pragmatic and sound economic system. And if we want that, we’re going to need to vote for it.
Nicholas Woode-Smith
Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Red flag as budget deficit widens to 6% of GDP
NICHOLAS WOODE-SMITH: ANC leases SA’s foreign policy to highest bidder
EDITORIAL: Expect a populist state of the nation address
LETTER: New low for academia
ALEXANDER PARKER: Only one speech matters in February — and it is not Ramaphosa’s
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