Without a vision SA perishes: How Godongwana got it all wrong

The Institute for Economic Justice (IEJ) criticizes the 2021 Medium Term Budget Policy Statement (MTBPS), arguing that the South African government's commitment to austerity and a primary budget surplus by 2024/25 ignores the social and economic crisis. The IEJ contends that budget cuts to health, education, and social protection, combined with insufficient infrastructure and job creation funding, will stifle recovery and increase inequality.

• The 2021 Medium Term Budget Policy Statement (MTBPS) prioritizes a primary budget surplus by 2024/25 through significant real-term spending cuts across key social sectors. Consolidated non-interest expenditure is reduced by 3.3% annually in the medium term expenditure framework (MTEF), resulting in real per person expenditure falling from R26,140 in 2020/21 to R25,117 in 2024/25.
• Specific budget reductions are identified in health, basic education, and social protection. Health expenditure is cut by R11.2bn between 2021/22 and 2022/23 (averaging -4.8% in real terms), basic education declines by R2.2bn between 2021/22 and 2022/23 (averaging -3.1% in real terms), and social protection declines by R18.7bn between 2021/22 and 2022/23 (averaging -5.8% in real terms).
• The IEJ argues that the government is failing to utilize available fiscal space for economic rescue. Despite projected higher gross tax revenues of R120bn this year and R130bn over the next two years, and a decrease in net loan debt to 66.2% in 2020/21, the government has placed R15bn this year and R29bn annually for the next two years into an "unallocated reserve".
• Funding for job creation and infrastructure is deemed insufficient. Only R24bn is allocated to the Infrastructure Fund over the 2022 MTEF period, and R10bn is allocated for phase two of the Presidential Employment Stimulus. Total expenditure on job creation and protection remains R76.4bn below the R100bn proposed in the Covid-19 rescue package.
• The IEJ proposes several alternatives to austerity, including a comprehensive stimulus package targeting the care, construction, and manufacturing sectors; the development of a Universal Basic Income Grant (UBIG); the implementation of a wealth tax; and the acceptance of higher debt levels in the medium term to enable a growth strategy.

APA

Mncube, B. S. Z. (2021). Without a vision SA perishes: How Godongwana got it all wrong. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/without-a-vision-sa-perishes-how-godongwana-got-it-all-wrong/

Chicago

Mncube, Busi Sibeko, Zimbali. Without a vision SA perishes: How Godongwana got it all wrong. Institute for Economic Justice, 2021. https://iej.org.za/press-room/in-the-media/without-a-vision-sa-perishes-how-godongwana-got-it-all-wrong/.

Wikipedia

{{cite press release |last1=Mncube |first1=Busi Sibeko, Zimbali |title=Without a vision SA perishes: How Godongwana got it all wrong |publisher=Institute for Economic Justice |date=14 November 2021 |url=https://iej.org.za/press-room/in-the-media/without-a-vision-sa-perishes-how-godongwana-got-it-all-wrong/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{mncube2021without, author = {Mncube, Busi Sibeko, Zimbali}, title = {{Without a vision SA perishes: How Godongwana got it all wrong}}, publisher = {Institute for Economic Justice}, year = {2021}, month = nov, url = {https://iej.org.za/press-room/in-the-media/without-a-vision-sa-perishes-how-godongwana-got-it-all-wrong/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }