SA will run out of money by 2042 – economist
If the fiscus continues on its current trajectory, South Africa will run out of money by 2042, members of Parliament have heard.
The Standing Committee on Finance held public hearings on the Budget on Wednesday. Among those making submissions was Professor Jannie Rossouw of the Fiscal Cliff Study Group.
"At the rate we will run out of money by 2042.
"We cannot continue," he told MPs, before making recommendations of how to cut expenditure.
Rossouw highlighted the expenditure of ministries was exorbitant – spend for the ministry of Defence and Military Veterans was the most at R137.7-million, while Treasury spent the least on its ministry at R4.4-million.
Rossouw suggested if all of the 35 departments cut down expenditure to that of Treasury, then R1-billion could be saved.
Thereafter government could start looking to reducing the size of the Cabinet.
Fiscal cliff
Rossouw said that South Africa was closer to the fiscal cliff than ever before.
He emphasised that State-owned enterprises posed risks to the fiscus – Eskom being the biggest headache.
He suggested that costs of Eskom be cut by removing bonus payments altogether, reducing the headcount and having the power utility post job numbers on the website on a weekly basis.
He also called for Eskom board meetings to be opened to the public. "After all, it is a monopoly owned by government, serving the people. Nothing can be secret," he said. Overall transparency at State-owned enterprises must be improved, he said.
Rossouw also suggested that the tax returns of the president, deputy president, Cabinet ministers and their deputies should also be made publicly available as a start in rooting out corruption.
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