Part 4/9:
Similar to balancing personal finances, the government must either increase revenue or decrease expenditures to avoid further spiraling into debt. However, viable options appear limited, as both avenues come with significant roadblocks.
Options for Alternatives: Taxation and Cutting Expenses
On the one hand, the finance minister Enoch Godongwana can attempt to increase national revenue by raising taxes. However, escalating taxes can stifle economic growth by reducing the incentives for businesses to operate. While the government may lean towards taxing the wealthy, many affluent individuals have already diversified their investments offshore, meaning the return on taxing high earners may not yield adequate resources.