Press Statement: Budget 2022/23 Expectations

The Institute for Economic Justice (IEJ) advocates for a human-centered 2022/23 South African budget, proposing the permanent establishment of a basic income guarantee funded by commodity revenue windfalls rather than VAT increases. The IEJ calls for the cancellation of the Youth Employment Incentive, increased funding for industrial Master Plans to localize production, and the reversal of proposed real-term cuts to public service expenditure to address deteriorating infrastructure and social services.

• The IEJ recommends transitioning the Social Relief of Distress (SRD) grant from a temporary framework to a permanent provision. They propose setting the grant at the Food Poverty Line of R624, with a progressive increase toward the Upper Bound Poverty Line of R1 335, arguing that the current flat R350 is insufficient and not linked to objective poverty measures.
• The IEJ argues that the extension of the SRD grant can be funded by a R200 billion higher-than-expected revenue windfall from commodities. The organization opposes using Value Added Tax (VAT) increases for financing, as this would negatively impact the disposable income of low-income households.
• The IEJ calls for the cancellation of the Youth Employment Incentive (ETI), citing a 2014 United Nations University World Institute for Development Economics Research study that found its impact on youth unemployment to be statistically insignificant. The IEJ suggests that cancelling this incentive could generate up to R4.9 billion in revenue to fund a Universal Basic Income Guarantee (UBIG).
• The IEJ advocates for increased funding for sector-specific industrial policy and Master Plans to reverse deindustrialisation and support the localisation of production inputs, which they state is essential for boosting manufacturing revenue and creating quality jobs.
• The IEJ expresses concern over proposed real-term annual cuts of 3.3% to consolidated non-interest expenditure. They note that real per person expenditure is projected to fall from R26,140 in 2020/21 to R25,117 in 2024/25, which they argue contributes to the deterioration of public services, such as ambulance shortages in the Eastern Cape and poor school infrastructure.

APA

Institute for Economic Justice (2022). Press Statement: Budget 2022/23 Expectations. https://iej.org.za/press-room/statements/press-statement-budget-2022-23-expectations/

Chicago

Institute for Economic Justice. Press Statement: Budget 2022/23 Expectations. 2022. https://iej.org.za/press-room/statements/press-statement-budget-2022-23-expectations/.

Wikipedia

{{cite press release |author=Institute for Economic Justice |title=Press Statement: Budget 2022/23 Expectations |date=22 February 2022 |url=https://iej.org.za/press-room/statements/press-statement-budget-2022-23-expectations/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{instituteforeconomicjustice2022press, author = {{Institute for Economic Justice}}, title = {{Press Statement: Budget 2022/23 Expectations}}, publisher = {Institute for Economic Justice}, year = {2022}, month = feb, url = {https://iej.org.za/press-room/statements/press-statement-budget-2022-23-expectations/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }