MEDIA RELEASE: SECTION27 IS DISAPPOINTED BY YET ANOTHER MEDIUM-TERM BUDGET POLICY STATEMENT THAT FAILS TO CONSIDER THE HUMAN COSTS OF AUSTERITY
The 2021 Medium Term Budget Policy Statement (MTBPS) presented by new Finance Minister Enoch Godongwana to Parliament on 11 November has once again affirmed government’s commitment to austerity budgeting. The deep cuts proposed to spending on socio-economic rights will make life harder for the majority of people who rely on public health services, public schools, transport and social grants the most.
SECTION27 is particularly concerned by the government’s plans to slash funding for health care by -13.7% and basic education by more than -9.1% over the next three years.
SECTION27 believes that the total R180 billion of real expenditure cuts proposed in the MTBPS for 2022/23 are neither viable nor constitutional. By proposing more cuts to already ailing public services, Minister Godongwana’s first MTBPS ensures that the poor will continue to bear the brunt of fiscal consolidation.
SECTION27 also does not think these regressive cuts are necessary given the improved economic growth projections and significant additional tax revenue available to government as a result of the commodity boom. The R250 billion expected tax windfall over the MTEF could and should have been used to avoid these devastating cuts.
Despite claiming this is a highly “redistributive” budget, this budget fails to plan for the type of future envisaged by the South African constitution and does not allocate for increasing needs in the health and basic education sectors.
In the face of yet another underwhelming budget, “we are reckoning with the human rights costs that government has once more failed to take into account” says SECTION27s Budget Analyst, Daniel McLaren. “There is still time to change course if only government were prepared to consider the alternatives to austerity that are available. Government must do everything it can to mobilise resources to avoid the devastating impacts that the proposed budget cuts will have on public health services and public schools for years to come.”
Click here to access SECTION27’s complete analysis of the MTBPS:
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For media enquires contact:
Boitumelo Masipa | 081 452 9096 | masipa@section27.org.za
Julia Chaskalson | 083 440 2674 | chaskalson@section27.org.za
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