An analysis of South Africa’s current economic crisis which has put the country on the path of fiscal unsustainability was recently published by renowned economics professor Ricardo Hausmann and a number of co-researchers.
The paper shows clearly that South Africa embarked on an unsustainable fiscal trajectory over the last decade. Specific attention is drawn to the fiscal pressures coming from unsustainable growth in civil service remuneration and social grant expenditure over the period under review.
