Open Letter: Treasury must align fiscal policy with its institutional and constitutional obligations

An open letter dated 24 October 2024, signed by a coalition of South African civil society, labour organisations, and policy experts, addressed to President Cyril Ramaphosa. The letter argues that the National Treasury is exercising disproportionate authority over government policy, specifically by obstructing the transition of the Social Relief of Distress (SRD) grant into a permanent basic income system through an ideology of austerity.

• The authors allege that the Minister of Finance and National Treasury have appropriated disproportionate authority in government policy-making, which they claim undermines the progressive realisation of constitutional rights and precludes democratic discussion on national challenges.
• There is a reported policy conflict regarding basic income support: while President Cyril Ramaphosa has expressed commitment to a basic income system, the National Treasury allegedly opposes it, citing fiscal constraints, and a senior official suggested the intention is to terminate the Social Relief of Distress (SRD) grant.
• The SRD grant is described as highly exclusionary, with only approximately 8 million people receiving it monthly despite over 17 million active applications. The authors attribute these exclusions to arbitrary barriers created because Treasury has not provided adequate funding to cover the target population.
• The letter argues that National Treasury's decision-making is not politically neutral but is ideologically biased toward a narrow economic paradigm of austerity and privatisation, which the authors claim has worsened poverty and inequality while enriching a few.
• The authors contest the claim that a lack of resources prevents the advancement of socio-economic rights, asserting that resources can be mobilised and that investments in social assistance provide positive fiscal multipliers, particularly in highly unequal developing societies.
• The coalition requests that the Presidency and Cabinet urgently resolve the policy contradictions by publishing a roadmap to basic income with clear targets and deadlines, and by ensuring Treasury finances rather than obstructs these constitutional rights.

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). Open Letter: 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. Open Letter: 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=Open Letter: 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{makube2024open, 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 = {{Open Letter: 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} }