MK Party calls for end to austerity ahead of Medium-Term Budget Policy Statement
The uMkhonto weSizwe Party (MKP) says it expects Finance Minister Enoch Godongwana to use this year’s Medium-Term Budget Policy Statement (MTBPS) to mark a decisive break from what it calls “austerity and failed neo-liberal policies.”
Godongwana will deliver his statement - also known as the mini-budget - in Parliament at 2pm today.
He is expected to outline fiscal and economic projections, expenditure priorities, and adjustments to the government’s medium-term framework.
In a statement issued ahead of the budget, the MK Party said the government must adopt a people-centred approach that prioritises jobs, infrastructure, and industrialisation to tackle what it described as a “national crisis of unemployment, inequality, and poverty.”
"The unemployment rate now stands at 43.1%, which is the highest in the world, while youth unemployment has reached an unbearable 72.4%. Among Africans, it is 47.5% and among African women, it has soared to 51.7%," MKP spokesperson Nhlamulo Ndhlela said.
It criticised the fiscal framework for continuing to mirror past austerity budgets that prioritise investor confidence and credit ratings over the basic needs of South Africans.
The MKP is calling for large-scale investment in infrastructure and public employment programmes such as the Expanded Public Works Programme (EPWP) and the Presidential Employment Stimulus.
It also urged the government to tap into fiscal resources, including the R392 billion Gold and Foreign Exchange Contingency Reserve Account (GFCRA) surplus, the R140 billion Unemployment Insurance Fund (UIF) balance, and the R645 billion Government Employees Pension Fund (GEPF) to rebuild the country’s productive capacity.
"The state must use its financial resources to rebuild the productive base of our economy, instead of imposing painful budget cuts," Ndhlela added.
The party further demanded progressive tax reforms, including a wealth tax targeting the top 1%, to ensure a fairer redistribution of the tax burden away from the poor and working class.
"South Africa’s challenge is not the size of its debt but its stagnant growth and deep inequality. We expect a new macroeconomic vision that restores dignity, creates decent jobs, and delivers inclusive and sustainable growth for all our people," Ndhlela said.
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