SANISHA PACKIRISAMY: Build, forget, regret: the costly cycle of infrastructure neglect
South Africa needs as much as R6.2-trillion to meet the UN sustainable development goals by 2030. Three-quarters of this is required to rehabilitate neglected infrastructure
The quest for fiscal prudence is set against a complex tableau of political pressures, public expectations and growth aspirations, all competing for attention. From politically savvy strategies to belt-tightening measures, the debate over the most effective path to fiscal fitness is intensifying.
The road to achieving a balanced budget, without resorting to debt restructuring or international aid, is fraught with trade-offs. The trimming of expenditure risks worsening inequality and stunting future productivity, while raising tax rates might not pack the revenue punch we hope for. Outside of detrimental inflationary policies that would reduce the real value of debt, this leaves the option of sprucing up the economy through structural reforms...
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