Labour, civil society and opposition political parties are awaiting this afternoon’s medium-term budget policy statement (MTBPS) from Finance Minister Enoch Godongwana.
The EFF said the party would not accept any budget cuts which have contributed to the country’s economic woes.
“The EFF will reject any attempts to continue with irrational and senseless budget cuts and austerity measures that are not informed by any empirical basis. Instead these budget cuts are driven by dangerous ideas that have not worked here, and have not worked anywhere in the world. Experience demonstrates that budget cuts and austerity measures have a negative impact on the economy, especially economies that are in stagnation and without hope of any growth prospects,” the EFF said on Tuesday.
Labour group, the Federation of Unions of South Africa (Fedusa), has appealed to the minister to reflect on the daily reality of South Africans face as he delivers his speech this evening.
With rising food and fuel prices, the minister is expected, through his budget, to help steer the economy in the right direction.
Fedusa spokesperson Betty Moleya said: “We have witnessed over the years how the government’s approach which seeks to rein in spending has failed to produce the desired outcomes, with the consequences felt in public services and the overall economic stability of the country.
“Fedusa is concerned about similar announcements that are likely to be the focal point of the MTBPS presentation. We maintain our stance that South Africa is a developing country with the intention to build a capable state, and that cannot be achieved when public services are continuously in the firing line when economic crisis knocks at our door.”
The DA has proposed targeted cuts to government expenditure, including a three-year wage freeze for public servants not covered by the occupation-specific dispensation, which covers professionals such as teachers and nurses.
The party preceded the minister’s statement by presenting its own medium-term budget with economic-driven solutions.
“South Africa’s fiscal environment remains characterised by an unsustainable level of debt, persistent deficit spending, slow economic growth, stubbornly high levels of unemployment, a deceleration of both foreign and domestic private capital formation, a decline in GDP per capita, escalating living costs, food insecurity, and political volatility.
“These circumstances are compounded by factors that fall under government purview such as uncertain private property rights, onerous labour market legislation, inadequate national and local governance, and a large and inefficient public sector dominated by monopolistic state-owned enterprises,” the DA said.
The Star