The Congress of South African Trade Unions (COSATU) presented its submission on the Medium-Term Budget Policy Statement (MTBPS)’s Division of Revenue Amendment (DORA) Bill to the National Assembly’s Standing Committee: Appropriations today. The DORA Bill covers adjustments in budgetary allocations to provincial and local government for the 2024/25 financial year.
COSATU was painfully underwhelmed by the business-as-usual MTBPS and DORA Bill tabled by government at Parliament on 30 October. With an economy struggling with 1% GDP growth, staggering high unemployment at 41.9%, entrenched levels of poverty and inequality, endemic crime and corruption, embattled public services and rising numbers of dysfunctional municipalities; workers and the nation had been hoping for a bold and aggressive MTBPS and DORA Bill.
The state of local government is extremely worrying. Whilst there have been some improvements in the number of municipalities owing workers’ salaries, there has been a shocking rise in the number defaulting on pension fund payments. The overall financial health of municipalities is deeply concerning with many failing to provide the basic services communities and businesses depend upon. An urgent set of interventions to stabilise and rebuild local government is desperately needed as is a new funding model.
The Federation welcomes the additional funds in the DORA Bill to repair infrastructure damaged by natural disasters, reduce the school infrastructure backlog and formalise the taxi industry. We are however deeply worried by some critical Departments, e.g. Basic Education, Cooperative Governance, Health and Agriculture being far behind their annual performance targets. Cabinet and Parliament should not continue to tolerate mediocrity.
Workers, society and the economy depend upon well-resourced public and municipal services. Government needs to move with speed to ensure that Departments and Municipalities are able to deliver their constitutional mandates by appointing competent management, filling frontline vacancies, investing in institutions’ capacity and infrastructure, and removing corrupt and criminal elements. Eskom and the South African Revenue Service have proven that if this is done, the state delivers the services the economy needs to grow and thrive. The monies spent ensuring the state can deliver such essential services will generate far greater returns in economic growth and the taxes required to enable these investments in society and the economy.
COSATU hopes that government will return to Parliament in February with a bold and decisive Budget that will fix and modernise the state, stimulate growth, create decent jobs and provide relief to the poor and unemployed. This is the only formula that can deliver the inclusive economic growth we need to achieve a better life for all.
Issued by COSATU
For further information please contact:
Matthew Parks(COSATU Parliamentary Coordinator)
Cell: 082 785 0687
Email: matthew@cosatu.org.za