Revised Fiscal Framework and Revenue Proposals

The IEJ criticizes the South African National Treasury's reliance on austerity and private-sector-led growth, arguing that the real burden of national debt is its cost rather than its size. The report proposes a shift toward a developmental budget that prioritizes public investment in infrastructure, green energy, and social services. To fund these priorities without increasing VAT, the IEJ suggests implementing a net wealth tax, reducing tax breaks for high earners, addressing illicit financial flows, and utilizing the Gold and Foreign Exchange Contingency Reserve Account (GFECRA). The document also calls for increasing the Social Relief of Distress (SRD) grant to the Food Poverty Line and restructuring Eskom's debt to facilitate a just energy transition.

• The IEJ argues that South Africa's primary debt challenge is the cost of debt service rather than the total debt level, noting that the public debt share of GDP at 71.4% at the end of 2022/23 is similar to the 69% average for comparable countries.
• The report identifies a trend of austerity-driven cuts to essential services, noting that real spending per learner in basic education is projected to fall from R25 387 in 2022/23 to R23 363 by 2026/27, and per healthcare user from R5 326 to R4 525 in the same period.
• Medium-term budget cuts are projected across key economic sectors, including a 20% reduction for innovation, science, and technology, a 13% cut for industrialisation and trade, and an 11% cut for agriculture and rural development.
• The Social Relief of Distress (SRD) grant budget has been reduced from R44 billion in 2022/23 to R33 billion in the MTBPS, which the IEJ claims has led to an arbitrary budget cap and an exclusionary application process.
• The IEJ proposes several specific revenue-generating measures: eliminating tax breaks for individuals earning over R750,000 annually (potentially R80 billion), instituting a net wealth tax (R70 to R160 billion), and expanding the financial transaction tax to include equities (R41 billion).
• The report suggests utilizing the R459 billion surplus in the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) to finance the budget deficit and developmental projects, as the South African Reserve Bank does not currently transfer these funds to the government.
• The IEJ warns against the 'private finance-led growth paradigm' and recommends that 75% of Eskom's legacy debt be swapped into a state-owned financial entity managed by National Treasury to avoid creditor vetoes on restructuring.

APA

Institute for Economic Justice (2023). Revised Fiscal Framework and Revenue Proposals. https://iej.org.za/wp-content/uploads/2023/11/Final-Revised-Fiscal-Framework-and-Revenue-Proposals-Submission.docx.pdf

Chicago

Institute for Economic Justice. Revised Fiscal Framework and Revenue Proposals. 2023. https://iej.org.za/wp-content/uploads/2023/11/Final-Revised-Fiscal-Framework-and-Revenue-Proposals-Submission.docx.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Revised Fiscal Framework and Revenue Proposals |date=6 November 2023 |url=https://iej.org.za/wp-content/uploads/2023/11/Final-Revised-Fiscal-Framework-and-Revenue-Proposals-Submission.docx.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2023revised, author = {{Institute for Economic Justice}}, title = {{Revised Fiscal Framework and Revenue Proposals}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2023/11/Final-Revised-Fiscal-Framework-and-Revenue-Proposals-Submission.docx.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }