South Africa's Rising Government Spending Driven by Unemployment and Debt Crisis
Government spending in South Africa has been increasing more than what the country earns, leading to concerns about the reasons behind this. A study looked at data from 1995 to 2018 and found that factors like high unemployment, rising debt, and inflation have been driving this spending. The study also showed that current spending, like social welfare, has been prioritized over investment spending, which could have negative long-term effects. To address this, the study suggests reducing the public wage bill, privatizing unproductive state-owned entities, and improving the overall economic environment to promote growth and stability.