The National Education, Health and Allied Workers’ Union [NEHAWU] notes the fact that the first budget of the Government of National Unity (GNU) was not presented today in Parliament by the Minister of Finance, Enoch Godongwana, as scheduled.

It is ironic that this time around the Treasury has caught itself in its own trap, having previously leaked information “to prepare the public” for an impending announcement. The unfolding policy of austerity, with its budget-balance and public-debt targets, was first planted in the public domain through such leaks, at the time when the government had received a mandate to shift away from austerity. This happened on the back of catastrophic socioeconomic consequences of COVID-19 pandemic, in which at least 2 million jobs were lost.

Subsequently, the Treasury made a tax giveaway to big business when it suddenly announced an unfunded Corporate Income Tax (CIT) cut by 1% in 2022 and this happened whilst the Treasury had launched an offensive on public servants when it openly undermined a collective bargaining agreement in terms of Resolution 1 of 2018 of the PSCBC by refusing to adjust the salaries of the public servants for 2020, accordingly. This offensive was sustained in the subsequent years whereby the salaries of the public servants were kept frozen, despite the escalating cost of living, through the none-pensionable cash gratuities in 2021 and 2022.

NEHAWU calls on the Treasury to reverse the corporate tax rate back to 28%, to increase the capital gain tax and to introduce a wealth tax.

NEHAWU condemns the Democratic Alliance (DA), as it has now plunged the GNU into a crisis that may aggravate the current socioeconomic crises facing the country. Last year the DA had invited the US government to interfere in the country’s democratic election process. Once again, this year after the autocratic American President, Donald Trump, announced his executive order against South Africa on the basis of falsehoods about the Expropriation Act, the DA suddenly took this legislation to court. The DA cannot be allowed to opportunistically block a popular mandate given by 40% of the voters, when it enjoys a mere 21.8% of electoral support. NEHAWU condemns the DA for its continuous political destabilisation of the country.

END

Issued by NEHAWU Secretariat.

Zola Saphetha (General Secretary) at 082 558 5968; December Mavuso (Deputy General Secretary) at 082 558 5969; Lwazi Nkolonzi (NEHAWU National Spokesperson) at 081 558 2335 or email: lwazin@nehawu.org.za