Jump to navigation

Vol 51 No 5

Published 5th March 2010


South Africa

Tightening the welfare belt

A centrist budget annoys the people who got the President elected and leaves some economic questions unanswered

South Africa is now the biggest welfare state in the developing world and the implications for public finances are frightening. As the recession tapers off, the rising public debt is set to peak in 2013 at an overwhelming 40%. Economists such as Iraj Abedian, Chief Executive of Pan-African Advisory Services in South Africa, argue that a government faced with a fiscal crisis cannot afford to commit the largest portion of its budget to public spending, such as social grants.

End of preview - This article contains approximately 646 words.

End of preview

Subscribers: Log in now to read the complete article.

Account Holders: Log in now and use your Account Credit to buy this article. No Credit? Top up your Account now.


If you have a print subscription already, click here for a password that gives you full access to the website.

If you are logged in, but still cannot access the full text of this article, email customer services or telephone us on +44(0)1638 743633.