For the past 11 years the South African government has pursued a policy of austerity. In recent years, government has reduced per capita spending (adjusted for inflation) by significant amounts. Spending on public services, for example, health and education, for each member of the population has fallen since 2019, from about R30,000 (about US$1,689) to about R28,000 (about US$1,576) in 2023.
National Treasury has confirmed the deterioration in public spending and investment.
But the austerity approach hasn’t worked. Unsurprisingly, the government has little to show for it. Per capita debt service costs continue to constrain the resources available for funding the works of the state. Government debt service costs are estimated to average R412.4 billion (about US$23 billion) per year over the next three years, which is more than other spending areas such as health and education.
