Against this background, briefly discuss whether the government should tax or borrow. In your discussion, consider the following: i) allocation (efficiency) and ii) distribution (equity). (4) The South African budget highlights for 2022 indicated the following: Total consolidated government spending will amount to R6.62 trillion over the next three years. Gross loan debt will stabilise at 75.1% of GDP in 2024/25. Debt-service costs consume an increasing share of GDP and revenue and are expected to average R333.4 billion a year over the medium term.