Premium – RW Johnson: These ANC sacred cows must be slaughtered to avoid default
By RW Johnson
The Medium Term Budget Policy Statement has come and gone, with the cans mainly kicked down the road. We are getting used to finance ministers issuing stark warnings about rising debt levels, the need for "fiscal consolidation" that never quite happens and the need for "tough choices" which, however, the ANC seems resolved never to face. In fact this year there were also some pregnant silences. Transnet's request for R100 billion was summarily turned down and Minister Godongwana made no mention at all of NHI. This continues what is now a long Treasury tradition of simply ignoring NHI as effectively uncosted and unaffordable.
Within a year or two interest payable on our national debt will absorb up to 25% of all government revenue. That will squeeze the amount available for all other items.
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