Source: Prof Johan Willemse, SAPPO News, November 2021, Modern Diplomacy
It is a fact that no business can keep going by keeping on borrowing and spending more money than what it generates. It is even more dangerous to spend the money on consumption and not on new investments that should grow the business and improve efficiency.
It is like a pig farmer borrowing continually for ten years to feed the pigs and fund expenditure and to even fund the interest on the growing debt. This is where government finances currently are. We all know that in order to turn a business financially around is hard work and tough decisions need to be made.
The question remains: Does our ANC government have what is needed to turn government business around? The medium-term budget, delivered on 11 November by the minister of finance, is a framework for government finances for the next three years to give guidance to markets and credit rating agencies about the outlook for government income, expenditure and borrowing.
Government income for 2021/22 is estimated at R1,65 trillion, growing to an expected R1,9 trillion in 2024/25, based on economic growth of around 1,7 – 1,8% per year. It will increase by 14,6% over the period.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.
