Renowned South African economics professor Ricardo Hausmann and a number of co-researchers recently published a study which shows clearly that South Africa embarked on an unsustainable fiscal trajectory over the past decade. Specific attention is drawn to the fiscal pressures coming from unsustainable growth in public service remuneration and social grants expenditure over the period under review, while actual economic growth declined and the country’s full potential economic growth rate also dropped from about 2.5% per annum to 1.5%.