Financing the Future: Budget Reform in SA 1994-2004

This research paper excerpt describes the severe socio-economic and financial challenges facing the ANC-led government of South Africa following the 1994 elections, specifically highlighting economic decline, extreme inequality, and a precarious fiscal state characterized by high borrowing and debt.

• Following the 1994 elections, the ANC-led government inherited a declining economy with extreme income and wealth inequality and a precarious financial state. In the 1992/93 financial year, net borrowing in the main budget reached nearly 9% of GDP.
• The deterioration of the government's financial position was driven by weak tax collection and poor expenditure controls, leading to rapidly increasing national debt and a growing interest bill.
• The national budget and debt were further strained by the re-incorporation of the TBVC states (the 'independent' bantustans), which suffered from debt problems even more severe than those of the main state.

APA

Pearson, J., Pillay, S., & Ledger, T. (2015). Financing the Future: Budget Reform in SA 1994-2004. Public Affairs Research Institute. https://pari.org.za/financing-the-future-budget-reform-in-sa-1994-2004/

Chicago

Pearson, Joel, Sarita Pillay, and Tracy Ledger. Financing the Future: Budget Reform in SA 1994-2004. Public Affairs Research Institute, 2015. https://pari.org.za/financing-the-future-budget-reform-in-sa-1994-2004/.

Wikipedia

{{cite report |last1=Pearson |first1=Joel |last2=Pillay |first2=Sarita |last3=Ledger |first3=Tracy |title=Financing the Future: Budget Reform in SA 1994-2004 |publisher=Public Affairs Research Institute |date=10 March 2015 |url=https://pari.org.za/financing-the-future-budget-reform-in-sa-1994-2004/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pearson2015financing, author = {Pearson, Joel and Pillay, Sarita and Ledger, Tracy}, title = {{Financing the Future: Budget Reform in SA 1994-2004}}, institution = {Public Affairs Research Institute}, year = {2015}, month = mar, url = {https://pari.org.za/financing-the-future-budget-reform-in-sa-1994-2004/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }