Answer to Question #207721 in Macroeconomics for CBC

Question

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

Answer 1

The South African government just like other nations across the globe has developed a taxation system to raise government revenue.

The high rate of unemployment especially among the youth has been a major crisis just as the situation is in other economies worldwide. This has made the government to spend more in making more investments in the economy so as to create job opportunities for the people.

Contrary to other economies, the South African economy has been exposed to a great challenge of decreasing income inequality over the last decade and also promoting growth, this has seen the government expenditure being pushed to a very high level.