Why Mboweni’s budget won’t work
Scepticism is growing over SA’s ability to implement the National Treasury’s aggressive debt stabilisation plan. A sovereign debt crisis is now a real risk
The debt stabilisation path outlined in finance minister Tito Mboweni’s supplementary budget, and to which the cabinet has agreed, exceeds the demands typically made in International Monetary Fund (IMF) adjustment programmes and is simply not feasible.
This is the conclusion of an analysis by University of the Free State economics professor Philippe Burger. It adds to the chorus of voices arguing that Mboweni’s plan is too aggressive to be credible and is unlikely to be achieved.