Economists Warn of Financial Crash

Cabinet not budging on Godongwana’s budget cut proposals, economists warn of financial crash.

Much-needed budget cuts look set to be dead in the water as Cabinet is refusing to budge on proposals to rein in spending, especially on police programmers and the massive public sector wage bill.

With the 2024 general election less than a year away, the public sector wage bill cannot be tampered with because the ANC could lose support from its alliance partner Cosatu, with whom thousands of public servants are affiliated.

More police officers will also be needed to respond to election-related, violence while increasing taxes, including a reported 2% VAT increase, will hit consumers hard.