UASA Media Release: 30 October 2024
Statement by Abigail Moyo, spokesperson of the trade union UASA:
In his first Medium-Term Budget Policy Statement (MTBPS) under the Government of National Unity (GNU), Finance Minister Enoch Godongwana again failed to provide measures to address the country’s high levels of unemployment and the shrinking economy in yet another vague report to fellow South Africans.
Godongwana’s tactic to tackle the high unemployment rate by implementing early retirement initiatives to introduce younger talent to the public service is highly disappointing. Most households depend on a single income, making the proposed initiative risky as there is no guarantee that the public service will absorb a sizeable percentage of the youth into the job market.
UASA is concerned about:
• Cutting the Treasury’s current growth expectation from 1.3% to 1.1% for the current year.
• Income tax disappointment as the Treasury now expects to earn R22.3 billion less in tax than the previous expectation estimate in February – some bad news for overstrained taxpayers.
• There is a lack of detail about introducing a fiscal rule to legislate a ceiling above which government debt cannot rise as from the MTBPS.
• Lower estimated tax revenue of R22.3bn for 2024/25 which increases the consolidated budget deficit, keeping SA on its fiscal consolidation path.
UASA welcomes:
• The planned designated investment in roads, ports and utilities as a “standalone asset class” and introduction of infrastructure investment trusts.
• Intentions to increase investment in bulk water, sanitation infrastructure, efficient water-management strategies and a new water-pricing strategy.
• The repayment of R3.2 billion owed by the South African National Roads Agency to compensate for losses stemming from the scrapped e-toll project in Gauteng.
• The Eskom municipal debt relief interventions under local government to assist municipalities in paying Eskom, ensuring proper service delivery to citizens.
We welcome Godongwana’s consistent “tough love” to State Owned Enterprises (SOEs) and government departments, including education and health, the primary departments that have, from time to time, benefited from budget top-ups from the minister. These departments are essential to domestic operations; however, the fact that they managed to survive under the initial budgets without receiving additional funds should open doors for the government to tend to other avenues needing financial boosts like infrastructure and reformation.
Lastly, UASA looks forward to the “far-reaching infrastructure reforms” where the national focus should be building the much-needed infrastructure outlined by Godongwana, believing that this era will bring about adequate employment and economic reformation.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.