Philippe Burger (Prof of Economics, University of Free State), Estian Calitz (professor emeritus at University of Stellenbosch) and Krige Siebrits (Senior Lecturer in economics, University of Stellenbosch) have discussed in their write up how the upcoming February budget could be used to restore SA’s credibility.
According to them, to restore growth, the government needs to invest heavily in infrastructure (electricity, water, harbors). To achieve this, government could cut expenditure (by cutting back the government salary bill) and reduce the debt ratio, as it did in the mid-1990s when its debt burden also approached 50%.
The government should also try as much as possible to invite on board the private sector in the financing, expansion and management of public infrastructure.
Read the full article here: http://www.rdm.co.za/business/2016/01/13/how-gordhan-s-budget-can-to-restore-sa-s-credibility