Shortly after the Minister of Finance gave his Supplementary Budget Speech, ERSA’s host, Margaux G met up with Prof. Estian Calitz, an Emeritus Professor of Economics at the University of Stellenbosch who also wrote ERSA’s second Policy Bulletin. Reflecting on the current fiscal environment in South Africa, Prof. Calitz highlights some of the challenges that lie ahead. Taking into consideration the Budget Review Speech, Prof. Calitz explains that the fiscal dilemma South Africa is currently facing is not because of fiscal shortcomings alone, but rather because of shortcomings in the economy at large.
The growing debt to GDP ratio cannot be viewed as being independent of shrinking market income, which has been exacerbated by the Covid-19 pandemic. Bringing in the importance of legislative processes, government credibility and the alignment of expectations, this podcast gives important context and much food for thought.
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