While significant additional expenditure was called for to correct this imbalance, government faced significant constraints: national government debt, for instance, was 50 per cent of GDP and debt service costs absorbed a considerable amount of funds. Mindful of the need to structure national finances in a sustainable way, government decided to do the right thing rather than go the macroeconomic populist route.
Government expenditure and debt were kept under control, the capacity of the South African Revenue Service to collect taxes efficiently was enhanced, and an environment conducive to economic growth was fostered. Progress was made on all these fronts, with the growing economy expanding the tax base and the formidable Revenue Service ensuring that the fiscus received what was due to it.