Cosatu Criticizes National Treasury for Lackluster Budget Amidst SA’s Economic Challenges

Amid a climate of enduring economic challenges and social strife, the Congress of South African Trade Unions (Cosatu), vocalized its discontent with the National Treasury's approach to South Africa's 2024-25 budget. Labeled as "underwhelming" by Cosatu, the budget has been accused of overlooking the severity of the current circumstances and merely performing a "bean-counting exercise" rather than taking bold, transformative steps. Cosatu, a crucial component of the political Tripartite Alliance, expressed their concern that the Treasury's projections for economic growth – a tepid 1.3% to 1.8% over the medium-term expenditure framework – are incongruent with the ambitious goals laid out in the recent State of the Nation Address.

According to Cosatu national spokesperson Matthew Parks, the key to recovery lies not in the acknowledgment of a mounting debt but in the practical stimulation of the economy. This includes crucial aspects such as reducing rampant unemployment, providing relief to the impoverished, and restructuring the state's functions — particularly in combating crime and corruption. Cosatu stands behind the government’s agreement with the Reserve Bank concerning the release of R150 billion from reserves, stressing that these should be optimally allocated towards revitalizing pivotal parastatals such as Eskom and Transnet. The intention is clear; these funds should serve as a springboard for economic growth and a catalyst to lowering the high unemployment rate.

Cosatu's agenda emphasizes the necessity of removing logistical bottlenecks that hinder economic progress, highlighting the importance of investments in new transmission lines to alleviate load shedding and boost renewable energy projects. The labor union has also recognized progress regarding the alleviation of port congestion and hopes the R47 billion loan guarantee to Transnet will further facilitate positive change. Notably, sectors like mining, manufacturing, and agriculture could profoundly benefit from improvements in freight transport, positively influencing job creation and state revenue.

Concurrently, the South African Federation of Trade Unions (Saftu) has tentatively praised the budget's increase in social grants but remains dismayed due to the child grants still falling short of the food poverty line. Saftu national spokesperson Trevor Shaku called out the Treasury for its failure to increase the budgets of pivotal departments such as basic education, health, social development, and correctional services for the upcoming fiscal term. Citing a real-term decrease in the health department’s budget, Shaku criticized the Treasury's budget for its potential detriment to the quality of public healthcare services.

In summary, both unions have indicated that while certain aspects of the budget are commendable, there exists a significant gap between policy intention and tangible, constructive action aimed at addressing South Africa's profound and diverse challenges. The call is for a budget that not only recognizes the existing problems but also boldly tackles them with effective, forward-thinking strategies.