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

The Institute for Economic Justice (IEJ) criticizes the 2024 Medium-Term Budget Policy Statement (MTBPS) as a continuation of austerity measures that prioritize debt stabilization over social needs. The IEJ argues that the budget fails to support the Government of National Unity's (GNU) goals of inclusive growth and poverty reduction, specifically citing cuts to social grants and underfunding of public services and industrial development.

• The 2024 MTBPS is characterized as a continuation of austerity, prioritizing debt stabilization through budget cuts. While consolidated government spending is projected to increase by R42.7 billion over three years, consolidated non-interest expenditure is expected to grow by only 4.2% for 2024/25 - 2027/28, which is lower than the CPI inflation of 4.5% and population growth of 1.5%.
• The budget fails to adequately resource public employment and services. Expenditure for 'job creation and labour affairs' accounts for only 0.97% of the budget over the next three years. Additionally, spending per uninsured healthcare user in 2019/20 rands is projected to drop from R4 116.78 in 2024/25 to R3 898.42 by 2027/28, although spending per learner is expected to rise from R18 813.82 to R19 372.11 over the same period.
• The IEJ identifies 'savage and unconstitutional nominal cuts' to social grants between 2024/25 and 2025/26. This is attributed to the National Treasury's failure to provide funding for the Social Relief of Distress (SRD) grant beyond 2024/25, despite the grant being used by approximately 8 million people per month to avoid severe hunger.
• The government is moving toward automating application and verification systems for grants, which the IEJ claims has already excluded roughly 50% of eligible SRD grant recipients. The National Treasury intends to 'intensify efforts to improve income verification and extend big-data cross-checking to all grants'.
• While infrastructure development funding is increasing by 7.3% in real terms over the medium term, the IEJ warns that the focus on Public-Private Partnerships (PPPs) and private-sector finance can increase user fees and hinder access to services.
• The budget shows a decline in funding for sectors critical to a developmental state. Between 2024/25 and 2027/28, 'Industrialisation and exports' and 'Agriculture and Rural Development' will see average real declines (in 2019/20 rands) of -2.93% and -3.9%, respectively.
• The IEJ criticizes the National Treasury's approach to international tax and debt, stating that the position to implement OECD’s GloBe rules while participating in the UNFCITC is 'out of touch' with the African Group's progressive position.

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} }