BL Premium reports that labour federations and opposition political parties dismissed the medium-term budget policy statement (MTBPS) presented on Wednesday to parliament by Finance Minister Enoch Godongwana as yet another indication the government wasfailing to steward the economy.
Godongwana laid bare the fiscal crisis dogging the country as he highlighted its low economic growth, persistent power cuts, high unemployment and a worrying rise in the cost of living. The MTBPS announced cuts to basic services amounting to more than R13bn, including basic education (R1.7bn), higher education (R2.9bn), health (R1.5bn), social development (R2.1bn), human settlements (R3.1bn), transport (R1.3bn) and water & sanitation (R880m). Cosatu’s Matthew Parks said the minister lost an opportunity to right the country’s economic weaknesses and said: “Workers and the entire country looked forward to government tabling a bold, decisive and progressive MTBPS. Tragically, yet again, Treasury failed to rise to the occasion.” Saftu’s Trevor Shaku said the federation did not agree that debt levels had grown disproportionately as the debt levels were still within a proportionate level when comparing SA with its emerging market peers. DA shadow finance minister Dion George stated: “This MTBPS was confirmation that government simply does not care about the plight of battling South African households who are unable to put enough food on their tables.” The EFF’s Floyd Shivambu said: “It’s an austerity budget [coming as] a result of a failing government.”
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
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