These higher yields on South African bonds will, over time, negatively affect the poor. As the South African government faces a higher cost of borrowing, it will have to devote a larger share of its (finite) resources to Page 3 of 10  servicing debt.
Unfavourable trends in receipts will have to be offset with curbs on disbursements; careful controls on spending are essential in order to avoid having to introduce revenue-side measures. The growth in GDP in 2001 could be on the order of 2.5 per cent. The planned reduction in the tax burden will have beneficial effects on domestic demand and growth.