The South African debt as a percentage of GDP is at an all-time high under the Zuma administration. When president Zuma came to power just six years ago in 2008, the national debt as a percentage to GDP was at 28%, today it is 46%.
The increase in government debt comes at a time when the ministers of finance, and other economic cluster ministers are preaching fiscal discipline and putting spending under control. The increase in deficit would not be a surprise to many South African who are asking daily for public officials to account for tax payer’s money.
There seem to be a correlation between increase in government deficit and wasteful expenditure.
A report released late last year by the auditor general on national and provincial government audit showed that out of 1.035 trillion rand spend in the 2013/2014 financial year by various government departments and state owned entities- only 15 percent by value of the expenses had clean audits and constituted 25% of the departments audited.
While 75 percent of government departments didn’t get clean audits. In education, health and public works only six departments reported their performance in a useful and reliable manner- the report said.
Education and health are key government priority sectors and receive high proportions of tax payer’s money or government budgetary allocation.
However, it is worrying that the Zuma Administration is not only increasing debts for South African children both born and unborn but is mismanaging tax payer’s money at the expense of health care, education and infrastructure for the poor…
photo credit: One Way Stock via photopin cc
South Africa Today – South Africa News
