{"id":350133,"date":"2019-10-31T09:32:45","date_gmt":"2019-10-31T07:32:45","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=350133"},"modified":"2019-10-31T09:32:45","modified_gmt":"2019-10-31T07:32:45","slug":"this-graph-shows-where-every-r1000-spent-by-the-south-african-government-is-going","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/350133\/this-graph-shows-where-every-r1000-spent-by-the-south-african-government-is-going\/","title":{"rendered":"This graph shows where every R1,000 spent by the South African government is going"},"content":{"rendered":"

Finance minister Tito Mboweni has released<\/a> <\/strong>his medium-term budget policy statement (MTBPS), showing South Africa’s debt problem.<\/p>\n

The MTBPS shows that despite large fiscal deficits over the past decade, in which South Africa\u2019s debt-to-GDP ratio has risen sharply, economic growth has not rebounded.<\/p>\n

“These deficits, which had provided some short-term support to the economy, are increasingly harmful to economic growth, leading to rising interest rates and uncertainty,” it said.<\/p>\n

“As debt has mounted, a growing share of\u00a0 limited public resources has been absorbed by interest payments, which increasingly crowd out spending on social and economic investment.”<\/p>\n

The below graph shows the breakdown of every R1,000 spent by economic classification in 2019\/20 at the consolidated national and provincial government level.<\/p>\n

\"\"<\/a><\/p>\n

Limited options<\/strong><\/p>\n

The MTBPS adds that the options to stabilise the fiscus are becoming increasingly limited.<\/p>\n

“Government\u2019s economic reform agenda will boost confidence and investment.<\/p>\n

“However, these reforms are only expected to begin yielding results over the next several years, implying continued weakness in revenue collection over the period ahead,” it said.<\/p>\n

Moreover, following several years of tax increases, revenue options are constrained, it said.\u00a0 It highlighted that the tax-to-GDP ratio is close to its 2007\/08 peak of 26.4% and that the 2019 budget included R10 billion in tax increases for 2020\/21.<\/p>\n

It added that further tax policy measures to raise this amount will be announced in the 2020 Budget.<\/p>\n

\n

Read: DA presents its own Medium-Term Budget \u2013 which includes a R168 billion cut to the public wage bill<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Finance minister Tito Mboweni has released his medium-term budget policy statement (MTBPS), showing South Africa’s debt problem.<\/p>\n","protected":false},"author":10,"featured_media":345534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-350133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/350133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=350133"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/350133\/revisions"}],"predecessor-version":[{"id":350421,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/350133\/revisions\/350421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/345534"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=350133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=350133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=350133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}