First Take SA

EIJ warns of economic contractions on budget cuts


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The Institute for Economic Justice says the budget cuts that are currently being pushed through by National Treasury will cause economic contractions and that it views the cuts as rushed and indiscriminate . National Treasury recently proposed drastic cuts in government spending in the next six months as part of fiscal consolidation. The cuts are based on government's forecasts of a 22 billion rand tax revenue shortfall. To discuss this further Elvis Presslin spoke to the Institute for Economic Justice Tax and Budget Researcher, Liso Mdutyana.

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