COSATU presented its submission on the 2025/6 Budget’s Division of Revenue Bill, providing allocations to provincial and local government, to Parliament’s Standing Committee: Appropriations.
The Federation supports the positive increase in funding for critical and economic infrastructure, with an additional R46 billion bringing total infrastructure investments over the next three years to a total of R1.03 trillion. This includes roads (R402bn), water (R156bn), plus investments in rail, ports, and four new hospitals in Limpopo and the Westen Cape.
Key to ensuring the successful rollout of the infrastructure programme is for law enforcement organs to ramp up the fight against corruption, construction mafia and cable theft syndicates, as well as vandalism. Similarly, Parliament will need to hold a tight leach over provincial and local government to make sure targets as well as BBBEE and local procurement commitments are met at all times.
The Federation is encouraged by additional funding to help rebuild frontline public services crippled by years of reckless neo-liberal austerity budget cuts, including R29 billion for education and R28.9 billion for health as well filling key frontline vacancies including 1 800 doctors, 4 000 police officers, nurses and teachers, plus rolling out of Grade R as per the Basic Education Laws Amendment Act. The over R814 million allocated towards laying the foundations for the National Health Insurance is a welcome sign amidst the onslaught of attacks on government’s efforts to roll out universal access to public healthcare.
Whilst COSATU welcomes substantial allocations to local government, including R2.3 billion to roll out prepaid electricity meters, we are deeply concerned by the rapidly deteriorating state of many municipalities, including 16 struggling to pay staff in the North West, Free State, Mpumalanga, Northern and Eastern Cape. Interventions to stabilise and rebuild local government, including a new funding model and a shift towards the District Development Model must be accelerated. We cannot afford the further collapse of many municipalities and basic services, in many rural areas and metros.
COSATU commends government for moving away previous inexplicable cuts to the Presidential Employment Programme which has provided invaluable experience to the unemployed with an R8.8 billion boost, including R3.7 billion for the Teaching Assistants and R22bn from the UIF for job creation. Whilst these shifts are not enough to turn the corner for 12 million unemployed, they are a welcome step forward.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Cell: 082 785 0687
Email: matthew@cosatu.org.za