CHANON LECODEY MERRICKS
ONLINE EDITOR
COSATU Division of Revenue Amendment and Special Appropriation Bills to Parliament
The Congress of South African Trade Unions (COSATU) presented its submission on the Division of Revenue Amendment and Special Appropriation Bills to Parliament’s Standing Committee on Appropriations. Whilst appreciating the many pressing demands facing the state, we remain deeply disappointed that government missed the opportunity to table a bold package of interventions that would tackle the fundamental crises of a staggeringly high 44% unemployment rate, weak economic growth averaging 1% for over a decade, entrenched levels of poverty and inequality, high rates of crime and corruption, embattled public and municipal services.
Whilst it is important to place the budget’s debt and deficit on a sustainable trajectory, this cannot be at the expense of stimulating the very economic growth and job creation essential to South Africa’s recovery. An unhealthy obsession with neo-liberal austerity budget cuts or in the case of the MediumTerm Budget Policy Statement, prioritising early retirement packages, is not a path to unlocking economic growth and slashing unemployment.
The MTBPS forecast that we will only reach the 3% economic growth needed to see unemployment fall in 2034 is beyond depressing. Unemployment has risen 2.4% this year alone. We do however welcome the R217 billion approved allocations for 32 infrastructure projects as well as R242 million for support for emerging farmers as these will have a critical impact. It is extremely disappointing that no further allocations have been made to boost the Public Employment Programmes to give hope to 13.2 million unemployed. It is beyond shameful that despite R13 billion worth of savings in social grants, yet again there is no inflationary relief for the 8 million destitute SRD Grant recipients.
Additional allocations of R556 million for HIV/AIDS, R3,8 billion for District Health Programmes and R1,6 billion for pregnancy and child nutrition are welcome. We are however worried that the Department of Health has only met 56 of its 500 health facilities’ maintenance and refurbishment targets for the year. Similar concern must be raised that the Department of Human Settlements has only achieved 13 000 out of its 62 000 new houses and 20 000 out of its 83 000 serviced sites annual targets.
The state of local government is alarming. The R28 billion interventions to restore billing capacity in the metros, R3,5 billion to roll out 250 000 electricity smart meters, R60 billion investments in water infrastructure, R21 billion for free basic services, and R6,2 billion towards infrastructure repairs including R1,46 billion for roads and R3,5 billion for municipal infrastructure are important interventions. However, we fear these do not go far enough with debt owed to municipalities exceeding R480 billion and local government owing Eskom over R120 billion. Much bolder actions are needed to rebuild local government.
COSATU welcomes the R1,25 billion boost to Border Management and R305 million for deportations. We are pleased that Treasury intervened to provide R560 million to stablise the Regular Force Medical Continuation Fund covering former South African National Defence Force members. We remain extremely worried about the impact under funding is having on the SANDF’s ability to fulfill its constitutional mandates. It is equally concerning that SAPS is not being provided with sufficient funds to employ additional personnel, in particular detectives and forensic investigators.
We are encouraged by the tireless efforts of the South African Revenue Service’s employees to tackle tax evasion and customs fraud, especially by the wealthy and illicit networks and the additional R4,5 billion allocation to SARS to boost these efforts. Government must now ease the increasingly suffocating tax burden upon the working class. Whilst there are positive parts to the MTBPS and the Bills, including allocations COSATU fought for, as an overall package it fails to respond decisively to the dire crises facing the working class and the economy; our 44% unemployment rate and stagnant economic growth. Reducing the debt and the deficit is not a path to growth.
COSATU will be seeking urgent engagements with government to ensure that a bold and progressive Budget that will invest in public and municipal services, stimulate economic growth and jobs, tackle crime and corruption, and provide relief and hope for the poor is tabled at Parliament in February.
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