Cabinet set to give final approval of reworked budget
The Congress of South African Trade Unions has called for a bold, progressive budget to tackle South Africa’s economic challenges.
Finance Minister Enoch Godongwana is set to deliver a revised national budget on Wednesday after a three-week delay.
The initial budget proposal, which was rejected on February 19, centred on the controversial plan to raise VAT by two percentage points—a move which has now reportedly been shelved.
Cosatu’s Matthew Parks said the federation wants to see increased support for Eskom, Transnet, and public services.
He emphasised that Cosatu opposes income tax hikes on workers, urging the government instead to boost funding to the South African Revenue Service to combat tax evasion.
“The economy will grow if we fix the state, stimulate growth, and slash unemployment,” Parks said.
“The government has a choice. We can continue the path that squeezes the poor and starves public services, or we can be sober and fix the state and ensure it has the resources that it requires.
“We simply cannot afford another limp budget, let alone one that pick-pockets workers through VAT or personal income tax hikes.”
Meanwhile, the cabinet is set to give its final approval of Godongwana’s reworked budget on Monday. The minister is expected to deliver his budget speech on Wednesday.
DA leader John Steenhuisen has indicated that his party will only support the reworked budget if it puts more emphasis on igniting economic growth.
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