COSATU presented its submission on the 2025/6 Budget’s Appropriation (allocations to national government), Division of Revenue (allocations to provincial and local government) and Eskom Debt Relief Amendment Bills to Parliament’s Select 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 and 13 000 university beds. The R19 billion investments in Metro Rail will be a boost to 10 million workers across the metros, providing them more affordable and faster transport to get to work.
We are however deeply dismayed that the R1.4 billion due to help rebuild the Post Office as per the business rescue court mandated agreement is missing from the Budget and yet to be paid, threatening the jobs of thousands of postal workers. We are concerned with the reduction of debt relief provided to Eskom and fear this may undermine its efforts to maintain and invest in its infrastructure. The conversion of Eskom’s debt relief into equity by the state, we hope may help it on its path to recovery and to fulfil its mandate to provide reliable and affordable electricity is key to industrial and economic growth.
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 1 200 doctors, 4 000 police officers, nurses and teachers, plus rolling out of Grade R as per the Basic Education Laws Amendment Act. The over R2.1 billion allocated towards laying the foundations for the National Health Insurance is a welcome sign amidst the onslaught of attacks on government’s efforts to rollout universal access to public healthcare.
However, though these are a positive step in the right direction, they are far from enough to undo years of brutal budget cuts that have crippled public services. The additional posts whilst welcome, are far from enough to reverse the drastic decline in the ratios of teachers to learners, nurses and doctors to patients, police officers to communities amongst others.
Whilst COSATU welcomes 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 and more failing to pay pension funds their due amounts. 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.
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, plus R22bn from the UIF for job creation. Whilst these are not enough for the 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