The Fiscal Cliff

This podcast forms part of the third instalment of The Fiscal Cliff, a monthly series by the Mail & Guardian on the state of South Africa's public purse. The series looks into the effect of fiscal consolidation on public services — which have steadily deteriorated over the years — and considers this policy's impact on the country's growth prospects.

While some experts contend that the health budget is big enough, research shows that spending on this vital line item has stagnated in real terms. Cutbacks have been intensified since the pandemic. In the second episode of our podcast series, the Mail & Guardian talks to the spokesperson of the Democratic Nursing Organisation of South Africa about how healthcare workers are feeling the spending pinch.

South Africa’s fiscal predicament was in full view. Three months prior, S&P Global downgraded the country's local currency debt to full junk status, citing the deterioration of its public finances. The rand was sent tumbling.

The crisis was a slow burn, which some have traced as far back Trevor Manuel’s tenure as finance minister.

In the first episode of The Fiscal Cliff, economics writer Sarah Smit is joined by the Mail & Guardian editor-in-chief Ron Derby, as they look back at how the country’s public finances ended up in such dire state. They also talk about how austerity has eroded public services, creating another set of risks.