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

The Institute for Economic Justice calls for a radical shift in South Africa's 2022 MTBPS, advocating for the expansion of the Social Relief of Distress (SRD) grant to at least R624 and the eventual introduction of a Universal Basic Income Guarantee. The authors argue against budget cuts in education and healthcare, suggesting instead that the government utilize an estimated R110-billion revenue overrun and implement a wealth tax and luxury VAT to fund social support and infrastructure. Additionally, the document recommends reversing the corporate tax rate cut from 28% to 27% and increasing support for the Industrial Financing Programme to combat deindustrialisation.

• The current Social Relief of Distress (SRD) grant should be increased to a minimum of R624 to align with the food poverty line, serving as a transition toward a Universal Basic Income Guarantee to address structural poverty and unemployment.
• The government should reverse the 2022 Budget's corporate income tax (CIT) reduction from 28% to 27%, as there is no evidence that such cuts support economic growth, while they are shown to increase inequality.
• An expected revenue overrun of R110-billion should be allocated to extend social support and protect households from rising living costs, supplemented by the introduction of a luxury VAT and a wealth tax.
• To prevent continued deindustrialisation and support long-term growth, the MTBPS must prioritise the Industrial Financing Programme (IFP) and various master plans, reversing the projected medium-term decrease in IFP allocations.
• Public services in healthcare and education must be protected with allocations that match population growth to prevent the exacerbation of inequality and the burden of unpaid care work on black women and girls.

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} }