Post-MTBPS 2021 Press Statement: National Treasury disinvests from the South African economy

The Institute for Economic Justice (IEJ) criticizes the 2021 Medium Term Budget Policy Statement (MTBPS), arguing that the National Treasury is pursuing a strategy of large-scale disinvestment and austerity that fails to address South Africa's economic and social crises.

• The National Treasury has implemented real-term spending cuts across several key government programs within the medium term expenditure framework (MTEF). Consolidated non-interest expenditure is cut by 3.3% annually, resulting in real per person expenditure falling from R26,140 in 2020/21 to R25,117 in 2024/25. Specific cuts include R11.2 billion for health expenditure between 2021/22 and 2022/23 (an annual average real-term cut of 4.8%), R2.2 billion for basic education between 2021/22 and 2022/23 (an annual average real-term cut of 3.1%), and R18.7 billion for social protection between 2021/22 and 2022/23 (an annual average real-term cut of 5.8%).
• The government's allocation for job creation and infrastructure is deemed insufficient. Only R24 billion is allocated to the Infrastructure Fund over the 2022 MTEF period. For the Presidential Employment Stimulus, only R10 billion is allocated for phase two, leaving total expenditure on job creation and protection R76.4 billion short of the R100 billion proposed in the COVID-19 rescue package.
• The IEJ argues that the government is ignoring available fiscal space to maintain an austere path toward a primary budget surplus by 2024/25. Despite R120 billion in higher-than-expected gross tax revenue this year and R130 billion over the next two years, the government has placed R15 billion this year and R29 billion annually over the next two years into an 'unallocated reserve'.
• To address the economic slump, the IEJ proposes several measures: implementing a comprehensive stimulus package targeting the care, construction, and manufacturing sectors; expanding the Presidential Employment Stimulus; developing a Universal Basic Income Grant (UBIG); implementing a wealth tax; and accepting higher debt levels in the medium term to enable a growth strategy.

APA

Sibeko, B., & Mncube, Z. (2021). Post-MTBPS 2021 Press Statement: National Treasury disinvests from the South African economy. Institute for Economic Justice. https://iej.org.za/press-room/statements/post-mtbps-2021-press-statement-national-treasury-disinvests-from-the-south-african-economy/

Chicago

Sibeko, Busi, and Zimbali Mncube. Post-MTBPS 2021 Press Statement: National Treasury disinvests from the South African economy. Institute for Economic Justice, 2021. https://iej.org.za/press-room/statements/post-mtbps-2021-press-statement-national-treasury-disinvests-from-the-south-african-economy/.

Wikipedia

{{cite press release |last1=Sibeko |first1=Busi |last2=Mncube |first2=Zimbali |title=Post-MTBPS 2021 Press Statement: National Treasury disinvests from the South African economy |publisher=Institute for Economic Justice |date=12 November 2021 |url=https://iej.org.za/press-room/statements/post-mtbps-2021-press-statement-national-treasury-disinvests-from-the-south-african-economy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{sibeko2021postmtbps, author = {Sibeko, Busi and Mncube, Zimbali}, title = {{Post-MTBPS 2021 Press Statement: National Treasury disinvests from the South African economy}}, publisher = {Institute for Economic Justice}, year = {2021}, month = nov, url = {https://iej.org.za/press-room/statements/post-mtbps-2021-press-statement-national-treasury-disinvests-from-the-south-african-economy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }