The Congress of South African Trade Unions (COSATU) presented its submission on the 2025/26 Budget’s Special Appropriation Bill to Parliament’s Select Committee: Appropriations.
COSATU is extremely disappointed with the lackluster Budget and Medium-Term Expenditure Framework (MTEF) that fails to decisively respond to the fundamental crises facing the working class and the economy, in particular a 41.1% unemployment rate, economic growth far below the 3% needed to create jobs, struggling public and municipal services and State-Owned Enterprises (SOEs), entrenched levels of poverty and inequality, and endemic crime and corruption.
Tragically the Budget prioritises balancing the books at the expense of aggressively kickstarting economic growth and tackling unemployment. Key to providing an environment where the economy can take off and the lives of the working class be improved, is to ensure that the state has the resources needed to fulfill their constitutional and developmental mandates.
COSATU however appreciates that there are important allocations that the Federation campaigned for in the Special Appropriation Bill, including R10.35 billion investments in Transnet’s Durban Container Terminal and its critical North and Iron freight rail corridors, plus R5.77 billion for Metro Rail’s rolling stock renewal programme.
Efficient and modern freight rail and ports are key to sustaining and creating thousands of mining, manufacturing and agricultural jobs as well as generating the tax revenue needed to fund public and municipal services that the working class depend upon. A reliable and affordable passenger rail service is essential to helping 10 million urban commuters, mostly workers, reach their destinations on time and safely. These allocations are a welcome boost towards Transnet and Metro Rail’s recovery. Modern freight and passenger rail are critical to shielding workers and the economy from ever volatile international oil and fuel prices.
The R2.08 billion for the rebuilding of Parliament and R1.16 billion for the holding of the pending local government elections are important to upholding South Africa’s constitutional democracy.
Much more must be done to enable Eskom to reduce the price of electricity, plus return Transnet and Metro Rail to full capacity to unlock the mining, manufacturing and agricultural sectors and to provide efficient public transport for urban workers. The substantial infrastructure investments over the MTEF of R1.07 trillion, in particular for energy, rail, ports, water, roads and airports will boost economic growth and jobs.
Although there are important allocations for some frontline services and infrastructure, COSATU remains deeply concerned that Treasury and government reduce the Budget to balancing books and miss the opportunity to craft a bold stimulus package that would fix public and municipal services, spur economic growth, boost employment, provide relief for the poor and unemployed, and ramp up tax compliance. It is urgent that these are addressed. We cannot afford to continue to normalise 1% economic growth nor 41.1% unemployment.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za