The new GNU shows no sign it will reduce Treasury’s outsized influence over policymaking

A statement by the Institute for Economic Justice criticizing the South African National Treasury's continued dominance over policymaking under the new Government of National Unity (GNU), arguing that its commitment to austerity and neoliberal fiscal strategies hinders economic growth and the provision of essential public services.

• The Institute for Economic Justice argues that the National Treasury maintains an 'outsized influence' over government policy, effectively dictating direction rather than following democratic mandates. This is evidenced by the Treasury issuing Medium-Term Expenditure Framework (MTEF) guidelines before the new Cabinet was announced, which stipulate that spending must remain lower than revenue and rely on private-sector participation in infrastructure, electricity, and rail via Operation Vulindlela.
• The document claims that the Treasury's fiscal strategy of reducing debt through spending cuts on essential services leads to negative social outcomes. Specifically, it asserts that following Treasury's prescriptions will result in spending R518 less per public healthcare user and over R600 less per learner over the next three years.
• The authors criticize the shift toward public-private partnerships (PPPs) for infrastructure, arguing that profit incentives drive up user fees and reduce access for the vulnerable. They cite international examples where PPPs allegedly increased water prices in Nepal, raised road user costs in Peru, and disrupted the UK railway system.
• The Institute for Economic Justice proposes several alternative revenue-raising measures to fund socioeconomic rights, which they estimate could raise more than R250-billion in the medium-term. These include a resource rent tax on mining profits, a wealth tax, a special VAT on luxury goods, and removing retirement fund tax breaks for those earning above R750,000.
• The document advocates for the implementation of a universal basic income grant (Ubig) to combat hunger, noting that a quarter of the population lives below the food poverty line. It highlights that the existing Social Relief of Distress (SRD) grant has been reduced from supporting 10.9 million people in March 2022 to 8.7 million by the end of 2023.

APA

Mncube, Z., & Howson, K. (2024). The new GNU shows no sign it will reduce Treasury’s outsized influence over policymaking. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/the-new-gnu-shows-no-sign-it-will-reduce-treasurys-outsized-influence-over-policymaking/

Chicago

Mncube, Zimbale, and Kelle Howson. The new GNU shows no sign it will reduce Treasury’s outsized influence over policymaking. Institute for Economic Justice, 2024. https://iej.org.za/press-room/in-the-media/the-new-gnu-shows-no-sign-it-will-reduce-treasurys-outsized-influence-over-policymaking/.

Wikipedia

{{cite press release |last1=Mncube |first1=Zimbale |last2=Howson |first2=Kelle |title=The new GNU shows no sign it will reduce Treasury’s outsized influence over policymaking |publisher=Institute for Economic Justice |date=21 July 2024 |url=https://iej.org.za/press-room/in-the-media/the-new-gnu-shows-no-sign-it-will-reduce-treasurys-outsized-influence-over-policymaking/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{mncube2024new, author = {Mncube, Zimbale and Howson, Kelle}, title = {{The new GNU shows no sign it will reduce Treasury’s outsized influence over policymaking}}, publisher = {Institute for Economic Justice}, year = {2024}, month = jul, url = {https://iej.org.za/press-room/in-the-media/the-new-gnu-shows-no-sign-it-will-reduce-treasurys-outsized-influence-over-policymaking/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }