MTBPS needs to break with our recent and current failed national fiscal strategy

The Institute for Economic Justice argues that the 2022 Medium-Term Budget Policy Statement (MTBPS) must abandon current fiscal strategies in favor of aggressive investment in social security, public services, and economic infrastructure to address structural unemployment and poverty in South Africa.

• The 2022 MTBPS should shift toward a fiscal strategy that stimulates aggregate demand and expands domestic supply capacity to reduce the debt-to-GDP ratio through economic growth and the tackling of unemployment.
• The Social Relief of Distress (SRD) grant, which has supported 10.5 million people, should be increased to at least R624 (the food poverty line) and serve as a transition toward a Universal Basic Income Guarantee.
• The government should protect public services by aligning allocations with population growth and recruiting more healthcare workers and teachers to combat classroom overcrowding and improve healthcare quality.
• The corporate tax rate cut from 28% to 27% implemented in the 2022 Budget should be reversed, as there is no evidence that cutting corporate income tax supports economic growth, while evidence suggests it increases inequality.
• An expected revenue overrun of R110-billion should be used to extend social support and protect households from the cost of living; additionally, the government should introduce a luxury VAT and a wealth tax to finance inclusive development.
• To stop the trend of deindustrialisation, the government must prioritise the Industrial Financing Programme (IFP) and various master plans, as the IFP's medium-term allocation is set to decrease.

APA

Mncube, Z., & Mahafu, V. (2022). MTBPS needs to break with our recent and current failed national fiscal strategy. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/mtbps-needs-to-break-with-our-recent-and-current-failed-national-fiscal-strategy/

Chicago

Mncube, Zimbali, and Vuyisiwe Mahafu. MTBPS needs to break with our recent and current failed national fiscal strategy. Institute for Economic Justice, 2022. https://iej.org.za/press-room/in-the-media/mtbps-needs-to-break-with-our-recent-and-current-failed-national-fiscal-strategy/.

Wikipedia

{{cite press release |last1=Mncube |first1=Zimbali |last2=Mahafu |first2=Vuyisiwe |title=MTBPS needs to break with our recent and current failed national fiscal strategy |publisher=Institute for Economic Justice |date=25 October 2022 |url=https://iej.org.za/press-room/in-the-media/mtbps-needs-to-break-with-our-recent-and-current-failed-national-fiscal-strategy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{mncube2022mtbps, author = {Mncube, Zimbali and Mahafu, Vuyisiwe}, title = {{MTBPS needs to break with our recent and current failed national fiscal strategy}}, publisher = {Institute for Economic Justice}, year = {2022}, month = oct, url = {https://iej.org.za/press-room/in-the-media/mtbps-needs-to-break-with-our-recent-and-current-failed-national-fiscal-strategy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }