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Johannesburg - Economist Mike Schüssler warned on Wednesday that the government should start slowing down its spending in four provinces.
"Much of the domestic economic recovery that has occurred is a result of government spending, which has grown by double digits in the four provinces where economic activity is measured," said Schüssler.
"This is not sustainable: government cannot and shouldn't want to increase spending by these rates. If this becomes a trend, government debt will become a problem again."
He was quoted in a media statement released by BoE Private Clients after Schüssler compiled the provincial barometers for BoE and Sake24.
Schüssler said in the Eastern Cape, where government spending through local and provincial government contributed 24% to the provincial economy, spending in July was 18% higher than in July 2009.
In June, the growth was 8%.
Similarly, government spending in July in Gauteng (18.6%), in the Free State (17%) and Western Cape (10.8%) was also much higher than in July last year, he said.
"Much of the domestic economic recovery that has occurred is a result of government spending, which has grown by double digits in the four provinces where economic activity is measured," said Schüssler.
"This is not sustainable: government cannot and shouldn't want to increase spending by these rates. If this becomes a trend, government debt will become a problem again."
He was quoted in a media statement released by BoE Private Clients after Schüssler compiled the provincial barometers for BoE and Sake24.
Schüssler said in the Eastern Cape, where government spending through local and provincial government contributed 24% to the provincial economy, spending in July was 18% higher than in July 2009.
In June, the growth was 8%.
Similarly, government spending in July in Gauteng (18.6%), in the Free State (17%) and Western Cape (10.8%) was also much higher than in July last year, he said.
