The Congress of South African Trade Unions COSATU will present its submission on the 2021/22 Budget and Medium-Term Expenditure Framework: Division of Revenue Bill to the National Council of Provinces Select Committee: Appropriations from 09:00 am, Wednesday 12 May 2021.

 The fundamental crises facing workers, the economy and state are a stagnant economy and unemployment that has risen past 40%.  These are compounded by the bleeding of the state of up to 10% or R150 billion to corruption and wasteful expenditure every year. There are billions lost to tax and customs evasion, and more billions are required to save State-Owned Enterprises that have been collapsed by looting and corruption.

The Budget and the Division of Revenue (DOR) Bill fails to do that.  There is deafening silence on the countless revelations from the Auditor-General’s reports regarding the collapse of good governance in many government departments and municipalities.

 The DOR Bill and Budget do not sufficiently speak to the progressive commitments of the Economic Recovery and Reconstruction Plan, namely job creation, combating crime and corruption, rebuilding the state, and stimulating the economy.  The infrastructure allocation is undermined by the R19 billion cuts to local government and the R504 billion cuts to provincial government over the MTEF. 

 The overwhelming and self-destructive drive of the Budget is to freeze and reduce expenditure on the backs of an imposed four-year wage freeze on public servants.  This will not stimulate the economy nor rebuild the state.  In fact, it will make matters worse because it will starve the state of the funds it needs to deliver public services to the poor and further demoralize already overstretched public servants.

 For further information please contact: Matthew Parks -COSATU Parliamentary Coordinator

Cell: 082 785 0687Email: matthew@cosatu.org.za