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Matshidiso Lencoasa
As South Africa’s government embarks on a new era of unity and cooperation, the upcoming medium-term budget policy statement (MTBPS) speech by Finance Minister Enoch Godongwana presents a pivotal opportunity for the government of national unity (GNU) to translate its promises into tangible actions.
The MTBPS presents a moral crossroad for South Africa’s new administration: to finally prioritise human rights and address the crippling social ills or commit to a path of fiscal austerity that undermines rights realisation for the most marginalised South Africans.
In the context of weak economic performance, rather than being a symbol of despair, the upcoming mini budget can be a beacon of hope, allocating resources to uplift the vulnerable, protect the marginalised and foster a more equitable society.
South Africa’s Fiscal Framework Threatens Human Rights
Fiscal policy offers a powerful lever for prosperity, but our government’s reluctance to prioritise progressive spending and strategic investment has been criticised by human rights bodies for hindering socioeconomic advancement. In 2018, experts from the UN Committee on Economic, Social and Cultural Rights warned that our budget’s austerity measures may amplify inequality while crippling the fiscal policy’s capacity for social redress.
During the same period, South African civil society has criticised our government’s commitment to austerity measures that continue to cut funding for essential social sectors such as basic education and healthcare, leaving millions to suffer, while debt-servicing costs continue to skyrocket. Empirically, the effects are evidenced by the thousands of teacher posts that were cut in the Western Cape, the closure of NPOs in Gauteng and the reduction of the number of child-care centres in KwaZulu-Natal.
Our government’s austerity drive has failed to yield fiscal stability, as our economy continues to be characterised by sluggish growth while soaring interest rates continue to erode essential public service delivery, threatening the state’s ability to fulfil its constitutional obligation. It is time to abandon this flawed fiscal approach. We urgently need a budget that safeguards human rights, prioritises the vulnerable and fosters inclusive development.
GNU budget must prioritise investment in pupils and teachers
As South Africa celebrates 30 years of democracy, Nelson Mandela’s profound words continue to resonate: “Education is the most powerful weapon to change the world.” Quality basic education is the game-changer we need to break cycles of poverty, unlock economic opportunities and harness the demographic dividend. Yet, despite its transformative power, education investment has taken a back seat to debt servicing, undermining our children’s future.
Should the GNU proceed with these cuts, provinces will be forced to make unjust trade-offs, such as reducing teacher posts, scholar transport or even textbooks. These factors will no doubt exacerbate existing challenges such as overcrowding and will further limit access to education for impoverished pupils.
The Basic Education Laws Amendment Act’s education reforms, including compulsory Grade R, have been welcomed by civil society and early childhood development (ECD) experts. However, the success of these reforms hinges on sufficient budget allocation to provincial departments. The department of basic education has estimated a shortfall of up to R129 billion by 2027/28, once accounting for compulsory Grade R, exacerbated by historical austerity measures that increase budgetary pressures to R176 billion. To avoid setting these critical reforms up for failure, substantial financial backing is crucial, making it imperative that the MTBPS reflect the government’s commitment to its success.
South Africa’s educational landscape is already marred by significant inequalities, with a staggering 81% of Grade 4 pupils unable to read for meaning. These outcomes mirror high levels of child poverty which persist in part as a result of the low levels of investment in early childhood development by the state. In 2024/25, funding for child care and early learning programmes attended by 2.4 million children amounted to only R3.7 billion, or 0.2% of non-interest expenditure. The main public funding source for these programmes, the ECD subsidy, has been frozen at R17 per child per day since 2019, eroding its value by a quarter.
To address this, the mini budget must prioritise strategic investments in ECD and key education programmes and ensure adequate staffing in all classrooms. Crucially, this requires enhancing teacher development to improve educational outcomes, ensuring accessible transportation for disadvantaged pupils and providing adequate learning materials for all. It also demands recognition of the socioeconomic factors that entrench educational disparities, such as poverty, unemployment and inequality. By prioritising education and addressing these systemic challenges, South Africa can build a more just, inclusive and prosperous society for future generations.
The MTBPS is a test of the GNU’s commitment to universal health coverage
While South Africa has expanded quality healthcare access, deep socioeconomic disparities persist and are best reflected in our two-tiered healthcare system which favours the privately insured. This unacceptable inequality necessitates bold reforms to promote universal access to quality healthcare, transcending socioeconomic boundaries. As such, it is crucial that the MTBPS propose strategic investments in healthcare to unlock a healthier future for all South Africans.
Nevertheless, the mini budget offers a pivotal opportunity for correction. We urge the government to reverse the R1.2 billion cut to health infrastructure investment and the R1.3 billion cut to HIV/Aids investment and prioritise adequate staffing health facilities in marginalised communities.
To truly prioritise healthcare, we must redirect funds towards critical areas. This includes addressing historic underspending in health infrastructure, scaling up antiretroviral treatment (ART) uptake, developing robust health information systems and providing comprehensive support for patients on ART to bolster retention. The MTBPS can reflect a GNU that prioritises healthcare and ensures equitable access to quality services for all South Africans.
A budget that upholds human rights is South Africa’s only path forward
The government’s heeding of the civil society recommendation to wield the gold and foreign exchange contingency reserve account shows a smarter way to reduce deficits through alternative financing, rather than austerity. We recommend that the MTBPS reflect these innovative fiscal interventions to protect the most marginalised in our society from austerity measures.
Moreover, the MTBPS must apply participatory human rights impact assessments to adjustments it proposes to enable the state to better understand, assess and address any adverse effects these decisions may have on the constitutionally protected human rights of people in this country. Considering the disproportionately gendered impact of austerity, we look forward to an MTBPS that has inculcated the gender responsive budgeting commitments the government has made.
South Africa’s budget crisis stems from a fundamental lack of sustainable, job-creating and inequality-reducing growth. We need a robust public investment strategy to drive sustainable growth, reduce inequality and escape austerity’s grip. In this context of polycrisis for our nation, we demand that our government wield the power of fiscal policy to build a state capable of adhering to its human rights obligations.
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