The Congress of South African Trade Unions (COSATU) presented its submission on the Medium-Term Budget Policy Statement (MTBPS)’s Adjustments Appropriation and Special Appropriation Bills to the National Assembly’s Standing Committee: Appropriations.  The two Appropriation Bills cover adjustments in budgetary allocations to National Departments for the 2024/25 financial year.

COSATU was painfully underwhelmed by the business-as-usual MTBPS and two Appropriation Bills tabled by government at Parliament.  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; workers and the nation had hoped for a bold MTBPS and Appropriation Bills.

We welcome additional allocations for R38 million to the Department of Justice to fund the International Court of Justice case in defence of the inalienable rights of the Palestinian people to be protected from genocide as well as R5 billion for the settlement of E-Toll debt.  This is a welcome intervention by government in response to the public and COSATU’s outcry against E-Tolls.

We welcome additional appropriations for COGTA R686 million for disaster relief, Home Affairs R1.5 billion for civic services modernisation, Basic Education R35 million for infrastructure backlog, Higher Education R57 million for TVET Colleges, Defence R1.7 billion for SANDF African deployments, Justice R182 million for Lower Courts Services and R39 million for Superior Courts’ Goods and Services, Police Service R1.4 billion for Stations, Visible Policing and Detective Services, Human Settlements R168 million for Informal Settlements, and Water and Sanitation R243 million for Regional Bulk Infrastructure.

We are however deeply concerned by painful cuts for the following frontline services, in particular Health with cuts of R10.5 million for National Health Insurance’s health systems, Justice with cuts of R257 million for salaries for Lower Courts Services, Police Service with cuts of R1.5 billion for salaries, Agriculture and Land Reform with cuts of R395 for land reform and emerging farmers support programmes, and the South African Post Office which has not received the R1.7 billion trench of the R3.4 billion financial relief package and which now threatens its possible liquidation at the end of November.

COSATU is deeply concerned that the Departments of Water and Sanitation, Health, Basic Education as well as Agriculture, Land Reform and Rural Development are shockingly far behind in meeting their water and school infrastructure, land reform and emerging farmers, and annual performance targets.  Cabinet and Parliament should not tolerate mediocrity.

Whilst appreciating the work done by government and Parliament to address the grey listing findings that have been a hindrance to attracting investment, these will only bear fruit if the Police, National Prosecuting Authority and the Courts have the resources, personnel and leadership to ensure that those who loot public and pension funds are tried, imprisoned and their assets attached.

The state of key frontline public services is extremely worrying.  Many are struggling due to severe budget cuts, freezes on key vacancies, aging infrastructure, rising ratios of health workers, teachers, police, home affairs and other frontline staff to the public.  These are having a massive impact upon the ability of the state to deliver the quality public services that society and the economy depend upon.

Government needs to ensure Departments 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 essential services will generate far greater returns in economic growth and the taxes required to enable these investments in society.

COSATU hopes 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 Tony Ehrenreich on 082 773 3194 or Matthew Parks on 082 785 0687