Austerity is wrong route

Belt-tightening means choosing not to invest in SA citizens.

- Thokozile Madonko and Fabio Andrés Diaz Pabon

For the past 11 years the South African government has pursued a policy of austerity. In recent years, government has reduced per capita spending (adjusted for inflation) by significant amounts.

Spending on public services, for example, health and education, for each member of the population has fallen since 2019 from about R30 000 to about R28 000 last year.

National Treasury confirmed the drop in public spending and investment. But the austerity approach hasn't worked. The government has little to show for it.

Per capita debt service costs continue to constrain the resources available for funding the work of the state. Government debt service costs are estimated to average R412.4 billion per year over the next three years, which is more than other spending areas like health and education.

It is important that the government moves away from the old approaches.

Now is not the time for more austerity.

The creation of a government of national unity presents the opportunity for a new approach.