Answer to Question #204985 in Macroeconomics for momo

Question

Compare and contrast South African government expenditure trends with other global economies over the past 10 – 15 years. 

Answer 1

Solution:

South Africa expenditure like other global economies has been increasing over the past 10 to 15 years. The reason for the increased expenditure is because of the increasing population and the need to stimulate economic growth. Just like other global economies, increased government expenditure is normally meant to increase economic growth.

In contrast to other global economies, South African government expenditure has been increasing at a higher unsustainable rate. This is due to increased government spending on healthcare, education, and public infrastructure. The South African government expenditure trends have been increasing at a higher rate compared to other global economies which have steady trends. This means that the South African government has failed to control its expenditure to manageable levels.