SUBMISSION ON FISCAL FRAMEWORK AND REVENUE PROPOSALS

The IEJ criticizes South Africa's current fiscal strategy of austerity and debt stabilisation, arguing it has led to a 'lost decade' of low investment and increased inequality. The document details real-term budget cuts in basic education and healthcare, and the lack of a permanent replacement for the Social Relief of Distress (SRD) grant. To reverse these trends, the IEJ proposes a pro-macroeconomic framework using counter-cyclical spending and a progressive tax regime—including a wealth tax, a resource rent tax, and the reversal of corporate income tax cuts—to fund public services and a Universal Basic Income Guarantee.

• The current fiscal strategy focused on debt stabilisation and a primary budget surplus is described as being 'divorced from the reality many face in South Africa' and contributing to increased inequality, poverty, and unemployment.
• South Africa experienced a 'lost decade' from 2012 to 2021, during which investment levels dropped from 18% to approximately 13% in 2021, and Gross Fixed Capital Formation has fallen across all sectors since 2015.
• Real expenditure on basic education is declining, with spending per learner projected to fall from R20,156 in 2021/22 to R19,478 in 2025/26, while class sizes increased to 31.4 learners in 2021/22.
• Real healthcare expenditure is decreasing by an average of -2% over the medium term, with real expenditure per capita for uninsured persons dropping from R5,080 in 2021/22 to R4,926 in 2023/24.
• The Social Relief of Distress (SRD) grant has not been adjusted for CPI inflation and lacks a clear medium-term replacement pathway beyond March 2024, despite its role in sustaining household consumption.
• The IEJ proposes several progressive revenue measures: reversing the Corporate Income Tax (CIT) cut back to 28%, implementing a wealth tax for the top 1% to raise R143 billion, and a 25% VAT on luxury goods to raise R9 billion annually.
• Eliminating specific tax rebates for the wealthy could generate significant revenue: removing medical tax credits for those earning above R500,000 could raise R5.7 billion, and ending retirement fund contribution deductions for those earning above R1 million could raise R28 billion.

APA

Institute for Economic Justice (2022). SUBMISSION ON FISCAL FRAMEWORK AND REVENUE PROPOSALS. https://www.iej.org.za/wp-content/uploads/2022/11/MTBPS-2022-Institute-for-Economic-Justice-Subsmission-.pdf

Chicago

Institute for Economic Justice. SUBMISSION ON FISCAL FRAMEWORK AND REVENUE PROPOSALS. 2022. https://www.iej.org.za/wp-content/uploads/2022/11/MTBPS-2022-Institute-for-Economic-Justice-Subsmission-.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=SUBMISSION ON FISCAL FRAMEWORK AND REVENUE PROPOSALS |date=28 October 2022 |url=https://www.iej.org.za/wp-content/uploads/2022/11/MTBPS-2022-Institute-for-Economic-Justice-Subsmission-.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2022submission, author = {{Institute for Economic Justice}}, title = {{SUBMISSION ON FISCAL FRAMEWORK AND REVENUE PROPOSALS}}, institution = {Institute for Economic Justice}, year = {2022}, month = oct, url = {https://www.iej.org.za/wp-content/uploads/2022/11/MTBPS-2022-Institute-for-Economic-Justice-Subsmission-.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }