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

The Institute for Economic Justice (IEJ) argues that South Africa's 2021 Medium Term Budget Policy Statement (MTBPS) prioritizes austerity and a budget surplus over necessary socioeconomic investment. The IEJ highlights significant real-term spending cuts in health, basic education, and social protection, asserting that such a contractionary stance stifles economic recovery and increases unemployment. The document advocates for a shift toward fiscal expansion, a comprehensive stimulus package, and the implementation of a wealth tax to fund a transformative economic agenda.

• The 2021 Medium Term Budget Policy Statement (MTBPS) implements significant real-term spending cuts across essential public services, with consolidated non-interest expenditure decreasing by 3.3% annually in the medium term expenditure framework (MTEF). Specifically, health expenditure was reduced by R11.2bn between 2021/22 and 2022/23, basic education expenditure declined by R2.2bn in the same period, and social protection spending fell by R18.7bn.
• The government's focus on achieving a primary budget surplus by 2024/25 is described as a 'contractionary macroeconomic stance' that hinders job creation and economic recovery. The IEJ notes that the government is failing to utilize available fiscal space, as gross tax revenue is projected to be R120bn higher than expected this year and R130bn higher over the next two years, yet R15bn this year and R29bn annually for the next two years are held in an 'unallocated reserve'.
• Investment in job creation and infrastructure is deemed insufficient; only R24bn is allocated to the Infrastructure Fund over the 2022 MTEF period, and the Presidential Employment Stimulus (PES) received only R10bn for phase two. Total expenditure on job creation 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), and the implementation of a wealth tax to increase revenue and promote equity.

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} }