The Centre for Development and Enterprise says government and SOEs are sitting on debt totalling R3 trillion.
Public debt, according to the organisation, is already at 60% of gross domestic product but shows little sign of stabilising and is increasing.
The key reason for this horrible situation is that the gap between government spending and income is widening.
Government’s spending plans average R350 billion A year and expected SOE bailouts stand at R2,2 trillion. This translates to borrowing of R1 billion a day over seven years.
That is an eye-watering overall borrowing rate of R1 billion a day for the next seven years.
We are not economists, but it seems to us that the government should stop this reckless spending.
The bloated civil service should be cut, but not indiscriminately. Don’t get rid of competent doctors, nurses, teachers or cops. Cut the number of ministries even further and abolish cadre deployment and nepotism.
Then round up the state capture looters, throw them in jail and return the loot to Treasury. The non-performing SOEs should be sold off. If that leads to retrenchments, so be it. We either drain this financial swamp or we drown.
- Bushy Green, Kagiso
- It most definitely is something we woud all like to see – the government acting decisively to punish those who have robbed many of their futures. How has it not happened yet? This letter wins R200 today. Call Nthabiseng at our offices to collect. – Deputy Editor
