The intent of fiscal policy is essentially to stimulate economic and social development by pursuing a policy stance that ensures a sense of balance between taxation, expenditure and borrowing that is consistent with sustainable growth. However, the extent to which fiscal policy engenders economic growth continues to attract theoretical and empirical debate especially in developing countries. The debate has recently been given more impetus in South Africa as the unions and the communist party argue that the fiscal policy direction since the new democracy in 1994 has to make way for a more interventionist approach. The basis of that agitation is due to the argument that the seemingly steady growth that has been recorded over the past decade has provided a low number of jobs. Indeed, over the period 1995-2008 real gross domestic product (GDP) grew at a rate of 3.6 per cent per year. This period has also been characterized by a more open economy as the country shed its pariah-state status and deepened her integration in the global market. QUESTION: What specific fiscal policy actions would you recommend for South Africa to stimulate economic growth and address the issue of job creation? Please provide specific policy measures and explain their potential impact on the economy. (25marks essay)