GNU mini-budget maintains the status quo despite urgent societal needs

The Institute for Economic Justice (IEJ) criticises the 2024 Medium-Term Budget Policy Statement (MTBPS) as a continuation of 'anti-poor' austerity measures. The IEJ argues that the budget prioritises debt stabilisation over inclusive growth, fails to adequately resource public services, and implements 'savage and unconstitutional' cuts to social grants, specifically the Social Relief of Distress (SRD) grant. The statement further warns against the use of binding fiscal rules and the shift toward Public-Private Partnerships (PPPs) for infrastructure, which the IEJ claims can increase user fees and hinder access for the vulnerable. Additionally, the document notes a decline in funding for industrialisation and agriculture, and criticises the government's lack of progressive revenue-raising measures and its alignment with OECD rather than UN-led international tax cooperation.

• The 2024 MTBPS continues a fiscal strategy of austerity that prioritises debt stabilisation through budget cuts, which the IEJ claims damages growth prospects and increases inequality.
• Consolidated non-interest expenditure is projected to grow by only 4.2% from 2024/25 to 2027/28, which is lower than the 4.5% CPI inflation and 1.5% population growth, effectively reducing spending per user for vital services.
• The budget fails to provide sustainable funding for the Social Relief of Distress (SRD) grant beyond 2024/25, leading to nominal cuts in social grants that the IEJ describes as unconstitutional.
• Public service resourcing remains inadequate; while spending per learner is projected to increase slightly from R18 813.82 in 2024/25 to R19 372.11 by 2027/28, spending per uninsured healthcare user is expected to drop from R4 116.78 to R3 898.42 in the same period.
• The government is shifting infrastructure development toward Public-Private Partnerships (PPPs) and private-sector finance, which the IEJ argues can drive up user fees and reduce service quality.
• Funding for key developmental sectors is declining in real terms (2019/20 rands) over the 2024/25 - 2027/28 period, with 'Industrialisation and exports' falling by 2.93% and 'Agriculture and Rural Development' falling by 3.9%.
• The National Treasury is attempting to implement a binding fiscal rule to lock in austerity, a move the IEJ suggests could stifle growth and undermine budget negotiations.

APA

Institute for Economic Justice (2024). GNU mini-budget maintains the status quo despite urgent societal needs. https://www.iej.org.za/wp-content/uploads/2024/11/IEJ-Statement-_-MTBPS-2024.pdf

Chicago

Institute for Economic Justice. GNU mini-budget maintains the status quo despite urgent societal needs. 2024. https://www.iej.org.za/wp-content/uploads/2024/11/IEJ-Statement-_-MTBPS-2024.pdf.

Wikipedia

{{cite press release |author=Institute for Economic Justice |title=GNU mini-budget maintains the status quo despite urgent societal needs |date=31 October 2024 |url=https://www.iej.org.za/wp-content/uploads/2024/11/IEJ-Statement-_-MTBPS-2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{instituteforeconomicjustice2024gnu, author = {{Institute for Economic Justice}}, title = {{GNU mini-budget maintains the status quo despite urgent societal needs}}, publisher = {Institute for Economic Justice}, year = {2024}, month = oct, url = {https://www.iej.org.za/wp-content/uploads/2024/11/IEJ-Statement-_-MTBPS-2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }