2042? No, SA can go broke within the next 5 years says analyst

2042? No, SA can go broke within the next 5 years says analyst

- Some experts say South Africa could face an economic crisis by 2024

- An independent economist says the country could run out of money due to exponetialy government debts

- The expert was pessimistic about government reversing its overspending

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An expert has warned that South Africa could run out of money in the next five years.

This comes after a Wits economist claimed that the country's money would dry up by 2042.

The crisis was blamed on increasing government spending and slow economic growth.

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One of the major reasons experts gave for the drain on the nation's funds was the high cost of ministries.

As a result, the EFF has demanded that the position of deputy minister be abolished to cut costs. The salaries for the 35 deputy ministers totals almost R69 million every year. 

Eskom and other failing parastatals were also identified as burdens to the fiscus. Rising electricity costs take a major toll on South Africans, and load shedding costs the economy billions in lost productivity. 

An independent economist, Fanie Brink, cautioned that all of this meant that South Africa's economic woes could reach crisis levels long before 2042.

He said that government spending continued to rise exponentially with no sign of slowing down.

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Part of Brink's solution to the problem includes a "total return to a capitalist economic system" - a proposal which is unlikely to be politically attractive to most voters.

Due to this, Brink said the the ANC would destroy the economy within the next half decade.

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Source: Briefly.co.za

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