At debt’s door: Tito’s ‘borrowing us into recession’

News

At debt’s door: Tito’s ‘borrowing us into recession’

We are living on overdraft and simply postponing the inevitable tax increases, warns economist

Chris Gilmour

With no increase in taxes in the recent budget, finance minister Tito Mboweni took many people by surprise. Economists had expected several tax  hikes to bring in desperately needed money, but there were none. And there were even beneficial inflationary adjustments to personal income tax rates.

“Instead, he went for the option of spiralling borrowing and increasing the deficit,” says economist Dawie Roodt.

“We are living on overdraft and simply postponing the tax increases which will eventually have to come. Debt is getting completely out of hand, and debt-servicing costs are his fastest-growing expenditure item,” he said...

This article is reserved for Times Select subscribers.
A subscription gives you full digital access to all Times Select content.

Times Select

Already subscribed? Simply sign in below.

Questions or problems?
Email helpdesk@timeslive.co.za or call 0860 52 52 00.

Next Article