MTBPS 2022 Institute for Economic Justice Subsmission

The Institute for Economic Justice (IEJ) submitted a report on 28 October 2022 urging the South African government to shift its fiscal framework from a narrow focus on debt stabilisation and primary budget surpluses toward targeting unemployment, poverty, and inequality. The IEJ argues that current austerity measures are causing a regression in the realisation of socio-economic human rights, specifically within education, healthcare, and social security, and proposes a transition to progressive taxation to fund public services and a permanent basic income support system.

• The IEJ argues that the current fiscal strategy, which prioritizes debt stabilisation and a primary budget surplus (projected for 2023/24), is unsustainable and contributes to increased inequality, poverty, and unemployment. The report notes that South Africa experienced a "lost decade" from 2012 to 2021, during which investment levels dropped from 18% to approximately 13% in 2021.
• Austerity measures have led to a decline in the quality of basic education. Real expenditure per learner is projected to fall from R20,156 in 2021/22 to R19,478 in 2025/26, while class sizes increased from 30.7 learners in 2018/19 to 31.4 in 2021/22, compounded by 73,000 vacant posts.
• Real healthcare expenditure is declining, with a projected average decrease of -2% over the medium term. Real expenditure per capita for the uninsured is expected to drop from R5,080 in 2021/22 to R4,926 in 2023/24, occurring alongside 39,000 vacant posts in public health.
• The IEJ criticizes the lack of a permanent replacement for the Social Relief of Distress (SRD) grant beyond March 2024 and the failure to adjust the grant for CPI inflation. It proposes transitioning the SRD into a permanent basic income support system financed through progressive taxation.
• The report proposes several progressive taxation measures to raise revenue for development: reversing the Corporate Income Tax (CIT) cut from 27% back to 28%, implementing a wealth tax for the top 1% (estimated to raise R143 billion), and introducing a 25% VAT on luxury goods (estimated to raise R9 billion annually).
• The IEJ suggests further revenue generation by eliminating tax rebates for the wealthy, specifically proposing the removal of medical tax credits for those earning over R500,000 (to raise R5.7 billion) and ending retirement fund contribution deductions for those earning over R1 million (to raise R28 billion).

APA

Institute for Economic Justice (n.d.). MTBPS 2022 Institute for Economic Justice Subsmission. https://www.iej.org.za/wp-content/uploads/2022/11/MTBPS-2022-Institute-for-Economic-Justice-Subsmission-.pdf

Chicago

Institute for Economic Justice. MTBPS 2022 Institute for Economic Justice Subsmission. n.d. 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=MTBPS 2022 Institute for Economic Justice Subsmission |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{instituteforeconomicjusticendmtbps, author = {{Institute for Economic Justice}}, title = {{MTBPS 2022 Institute for Economic Justice Subsmission }}, institution = {Institute for Economic Justice}, 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} }