Treasury must align fiscal policy with its institutional and constitutional obligations

The document is an open letter from South African civil society, labour organisations, and policy experts arguing that the National Treasury exercises disproportionate influence over government policy, often obstructing the progressive realisation of socio-economic rights. The authors specifically highlight the failure to transition the Social Relief of Distress (SRD) grant into a permanent basic income system, alleging that Treasury's adherence to an 'austerity' paradigm undermines constitutional mandates and inclusive economic growth.

• The National Treasury and the Minister of Finance are accused of wielding disproportionate influence over policy areas outside their mandate, which the authors claim undermines the realisation of constitutional rights and democratic oversight.
• There is a significant policy contradiction regarding basic income support: while President Ramaphosa has committed to a permanent system, the National Treasury reportedly continues to oppose it, citing fiscal constraints.
• The Social Relief of Distress (SRD) grant is described as highly exclusionary, with approximately 8 million people receiving it monthly despite over 17 million active applications, a gap the authors attribute to inadequate funding from Treasury.
• The authors argue that the National Treasury follows an ideologically biased 'austerity' paradigm—including spending cuts and privatisation—which they claim worsens poverty and inequality rather than fostering sustainable growth.
• The document asserts that resources to realise socio-economic rights are available and that investments in social assistance provide positive fiscal multipliers, particularly in highly unequal developing societies.
• The authors call for the urgent publication of a roadmap for basic income with clear targets and deadlines, and for the Executive and Parliament to increase oversight of fiscal and macroeconomic policymaking.

APA

Makube, M., Mncube, Z., Gardiner, M. B., Meintjies, C., Hayes, G., Paine, G., Masemola, K., Dyer, R. B., Grest, J., von Broembsen, M., Paine, T., Sadek, S., Rapholo, K. K., Smith, M., Magubane, M., Jacobs, F., Patel, P. J., Nxumalo, B., Quin, J., ... Haarmann, D. (2024). Treasury must align fiscal policy with its institutional and constitutional obligations. Institute for Economic Justice. https://iej.org.za/resource/open-letter/open-letter-treasury-must-align-fiscal-policy-with-its-institutional-and-constitutional-obligations/

Chicago

Makube, Mpho, Zimbali Mncube, Michael Bruce Gardiner, Cole Meintjies, Grahame Hayes, Gemma Paine, Katishi Masemola, et al. Treasury must align fiscal policy with its institutional and constitutional obligations. Institute for Economic Justice, 2024. https://iej.org.za/resource/open-letter/open-letter-treasury-must-align-fiscal-policy-with-its-institutional-and-constitutional-obligations/.

Wikipedia

{{cite press release |last1=Makube |first1=Mpho |last2=Mncube |first2=Zimbali |last3=Gardiner |first3=Michael Bruce |last4=Meintjies |first4=Cole |last5=Hayes |first5=Grahame |last6=Paine |first6=Gemma |last7=Masemola |first7=Katishi |last8=Dyer |first8=Robin Brandon |last9=Grest |first9=Jeremy |display-authors=etal |title=Treasury must align fiscal policy with its institutional and constitutional obligations |publisher=Institute for Economic Justice |date=24 October 2024 |url=https://iej.org.za/resource/open-letter/open-letter-treasury-must-align-fiscal-policy-with-its-institutional-and-constitutional-obligations/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{makube2024treasury, author = {Makube, Mpho and Mncube, Zimbali and Gardiner, Michael Bruce and Meintjies, Cole and Hayes, Grahame and Paine, Gemma and Masemola, Katishi and Dyer, Robin Brandon and Grest, Jeremy and von Broembsen, Marlese and Paine, Tabitha and Sadek, Safoora and Rapholo, Kabelo Kennybarel and Smith, Michael and Magubane, Mthokozisi and Jacobs, Faiez and Patel, Peter J. and Nxumalo, Busisiwe and Quin, Jane and Barnes, Jesse and Sadek, Ayanda Iman and Smith, Marquin and Luckett, Kathy and Petersen, Caroline Ashley and Dhooma, Hassan and Tyiso, Melisizwe and Hallowes, David and Japtha, Vanessa and Gasa, Nomboniso and Nzama, Qhawe and Simpson, Marcelle and Mafalo, Mogale and Herron, Brett and Mchunu, Andile Mangena and Silence, Estelle and Williams, Michelle and Malema, Malehlohonolo and Brislin, Dorothy and Samson, Michael and van Niekerk, Ingrid and Golcha, Preksha and Haarmann, Claudia and Haarmann, Dirk}, title = {{Treasury must align fiscal policy with its institutional and constitutional obligations}}, publisher = {Institute for Economic Justice}, year = {2024}, month = oct, url = {https://iej.org.za/resource/open-letter/open-letter-treasury-must-align-fiscal-policy-with-its-institutional-and-constitutional-obligations/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }