Editorials
1 minute read
11 Nov 2021
11:30 am

Mid-term budget: Should govt spend its way out of trouble?

Editorials

Perhaps our government needs to spend money in various places, to stimulate demand and keep poverty at bay.

As the South African economy has stagnated – even before the Covid disaster it was in trouble – there has been increasing pressure on the government to implement a fiscal stimulus programme as a way to jumpstart business. Archive photo: Ashraf Hendricks

Finance Minister Enoch Godongwana will have to accomplish that cliched “balancing act” in his maiden medium term budget policy speech today … as have many before him in that portfolio. As the South African economy has stagnated – even before the Covid disaster it was in trouble – there has been increasing pressure on the government to implement a fiscal stimulus programme as a way to jumpstart business. More than that, a fiscal package would have to include significant elements of social spending to help alleviate the poverty which is threatening to become a socio-economic timebomb. This poverty has been...