South Africa: Treasury Has Again Neglected South Africa's Most Economically Vulnerable, Say Civil Society Organisations

Protesters outside Parliament urged the Minister of Finance not to implement budget cuts, November 1, 2023.

Civil society organisations with a focus on education, health and social grants were less than enamoured with the 2023 Medium-Term Budget Policy Statement that Finance Minister Enoch Godongwana delivered on Wednesday.

While the spending cuts in the Medium-Term Budget Policy Statement (MTBPS) delivered to the National Assembly by Finance Minister Enoch Godongwana on Wednesday were not as severe as many had predicted, civil society organisations were left disappointed.

Isobel Fyre, the executive director of the Social Policy Initiative, said the MTBPS was indicative of a governing party about to go into an election.

"On one hand, you have a strong conservative macroeconomic policy being pursued by the National Treasury, which has had to be tempered by a political agenda of wanting to be seen responding to people's needs," Fyre said.

Key issues Godongwana addressed included healthcare, education, the Social Relief of Distress grant and employment.

Healthcare

In the February budget, Treasury allocated R259-billion to public healthcare. This was reduced by R24.1-billion in the MTBPS.

Matshidiso Lencoasa, a Budget Justice Coalition steering committee member, said the budget cuts in essential services would exacerbate inequality.

"Looking at [the] social spending element is deeply disappointing. There is an increased demand for public services such as public health, for example, because medical aid and private healthcare are becoming inaccessible because unemployment is rife. The tough economic outlook means that people have restricted income sources...

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