ANC is sugar-coating a serious money problem

Like many South Africans, my grasp of economics is not that great, but even I know a few basics that have me worried. In any household, if the monthly expenses exceed the income, then that family has not only run out of money, they are also living in debt.

According to data issued by National Treasury, the country’s total revenue grew by 8.7% year-on-year in August, but so did our expenses, which grew at a rate of 9.2%. What I also learnt is that South Africa’s national budget deficit (when the government’s spending exceeds its income) is growing.

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The final budget deficit from September this year is expected to be a staggering R12.8 billion, compared to R3.3 billion in September last year.

And with all of these numbers flying around, President Cyril Ramaphosa attended the ANC’s national executive committee meeting in Boksburg and one of the takeaways from these lunches is that the country is not running out of money.

Ramaphosa was backed by Finance Minister Enoch Godongwana, who said the country just needed to be prudent on how it spends money.

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This reasoning is like saying the Springboks did not beat Les Bleus 29-28 in their quarterfinal match, but rather, it was almost a draw. The facts are that France are out of the Rugby World Cup and South Africa proceed to the semifinals.

When you and I find ourselves in financial dire straits, we try and see how we can reduce expenses. This might mean downgrading to a DStv package that does not include the rugby, buying less coffee at the office or even going out to restaurants less frequently.

Then there is the bulk of South Africans for whom a restaurant is where they work and coffee is something they serve customers. These are the people who will be worst affected as the government tries to rein in the country’s expenditure.

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Some of the proposed cuts include a freeze on new public service jobs and minimal salary increases for public servants. Unfortunately, these measures are affecting South Africans who continue to be hard-hit by the increasing fuel price and skyrocketing food prices, among other ills.

Next year, the very same South Africans are going to the polls and it makes sense why the ruling party is sugar-coating a serious money problem.

But it is okay, as they say the truth is like pregnancy, no matter how much you try and hide it, in time, it will show.

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