SAMANTHA ENSLIN-PAYNE: VAT increase a risky step in a restless country
It will be a big budget this week, not only because it will be the first under President Cyril Ramaphosa, but because the work of fixing South Africa may require some tough decisions that are unlikely to sit well with citizens, many of whom have no jobs and are sinking in debt. This week, the Quarterly Labour Force Survey, released by Statistics SA, showed that the expanded unemployment rate in the fourth quarter last year increased to 36.3% compared to the same period a year ago. In four provinces the rate is over 40%. As families have struggled to keep their heads above water, many have incurred debt, in some cases to put food on the table. The government also needs more money and is in debt. Cutting government spending by trimming the cabinet, enforcing spending limits on ministers' cars, refurbishment of homes and other perks, and cracking down on wasteful expenditure and ending fraud and corruption is essential if it expects citizens to take some pain, say in the form of higher...
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