Author: Mike Schüssler
This is the week of the budget in South Africa and it looks like we're going to head for one trillion Rand government revenue if one includes local government. It's also very likely that we would have a R1.2 trillion expenditure from the total government sector excluding public enterprises.
Including public enterprises government expenditure and government influence on the economy is likely to be well in excess of 40% of the economy in the next few years. The developmental state is certainly here with us at the moment as government has unleashed huge spending from all forms of government whether it be state-owned enterprises, national, provincial or local government. Certainly the spending cuts have been opened and we will try to give you a clear picture of the road ahead.
While the budget deficit may be interesting to economists the fact of the matter is that over the next few weeks we are going to get a very clear and detailed picture from different ministries as to what the government is going to do on job creation in their departments and we are likely to get the same sense from many state-owned enterprises watch this space for more.