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For all its fiscal discipline talk, ANC is shackled to a political base that demands more state spending
There are moments in politics when the mask slips, the veil lifts, and the cold, hard arithmetic of economic reality becomes undeniable. This week’s national budget is shaping up to be one of those moments. The government of national unity (GNU), this fragile, awkward marriage of convenience, is about to face its first real stress test that will reveal whether it stands for anything at all.
Finance minister Enoch Godongwana has a helluva job. A R300bn shortfall, a debt burden creeping past R6-trillion, and the unenviable task of deciding which sacred cow gets the knife first: taxpayers, state-owned enterprises or social grants. The whispers of VAT increases, higher corporate tax and a potential wealth tax suggest the answer may be “all of the above”. ..
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