Ramaphosa: Compromises, Trade-offs Needed To Steer SA Economy Through Stormy Waters

The Budget presented by Finance Minister Tito Mboweni last week presents a sobering assessment of the state of our economy.
 
The figures make it plain that unless we act now to turn things around, there will be even more difficult times ahead.
 
Put simply, we are spending far more than we are earning.
 
As a result, we are borrowing more and more, and the cost of servicing that debt is rising. In fact, debt service costs are now the fastest-growing area of expenditure. We spend more on debt repayments than we do on health; only education and social development get more.
 
This position is precarious and unsustainable.
 
We need to make significant changes and we need to make them now.
 
There are several reasons for the position we’re now in. Our economy has not grown much over the last decade, mainly due to the