TEN PRIORITIES FOR THE 2022 MEDIUM TERM BUDGET POLICY STATEMENT

This policy brief by the Institute for Economic Justice (IEJ) outlines ten priorities for the 2022 Medium Term Budget Policy Statement (MTBPS), advocating for a shift away from fiscal consolidation toward a framework that prioritizes unemployment, poverty, and inequality reduction through increased public investment and progressive taxation.

• The IEJ argues that the National Treasury should abandon its 'extreme approach to fiscal consolidation and debt stabilisation' in favor of a macroeconomic framework that explicitly targets the reduction of poverty, inequality, and unemployment. This includes using countercyclical fiscal policy and increasing expenditure on public services, social infrastructure, and labour-intensive sectors.
• The document proposes transforming the Social Relief of Distress (SRD) grant into a permanent Universal Basic Income Guarantee (UBIG). It recommends increasing the SRD grant to the Food Poverty Line of R624 per month, with a goal of reaching the Upper-Bound Poverty Line (currently R1 335) over 2-5 years, while removing the means-test threshold within two years.
• To mobilize resources for socio-economic rights, the IEJ recommends reversing the reduction of Corporate Income Tax (CIT) from 28% to 27%, removing specific tax rebates for wealthy individuals and corporations, and eliminating subsidies on retirement fund assets and pension fund contributions.
• The brief calls for significant infrastructure investment, suggesting a public investment increase to R900 billion over the medium term. It emphasizes that the government should lead these investments rather than relying on Public Private Partnerships, focusing on rail, road, and social infrastructure.
• Regarding the energy crisis, the IEJ highlights Eskom's R400 billion debt as a primary obstacle. It proposes two options: using the Government Employment Pension Fund (GEPF) via the Public Investment Corporation (PIC) to refinance the debt, or utilizing the USD8.5 billion Just Energy Transition Transaction Partnership (JETTP) climate financing deal alongside a debt swap to a state-owned financial entity.
• The IEJ advocates for an increased budget allocation of R10 billion over the medium term for the Industrial Financing Programme to support the Clothing and Competitiveness, Infrastructure Investment Support, and Manufacturing Incentive sub-programmes.

APA

Institute for Economic Justice (2022). TEN PRIORITIES FOR THE 2022 MEDIUM TERM BUDGET POLICY STATEMENT. https://www.iej.org.za/wp-content/uploads/2022/10/Ten-priorities-for-the-medium-term-budget-policy-statement.pdf

Chicago

Institute for Economic Justice. TEN PRIORITIES FOR THE 2022 MEDIUM TERM BUDGET POLICY STATEMENT. 2022. https://www.iej.org.za/wp-content/uploads/2022/10/Ten-priorities-for-the-medium-term-budget-policy-statement.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=TEN PRIORITIES FOR THE 2022 MEDIUM TERM BUDGET POLICY STATEMENT |date=October 2022 |url=https://www.iej.org.za/wp-content/uploads/2022/10/Ten-priorities-for-the-medium-term-budget-policy-statement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2022ten, author = {{Institute for Economic Justice}}, title = {{TEN PRIORITIES FOR THE 2022 MEDIUM TERM BUDGET POLICY STATEMENT}}, institution = {Institute for Economic Justice}, year = {2022}, month = oct, url = {https://www.iej.org.za/wp-content/uploads/2022/10/Ten-priorities-for-the-medium-term-budget-policy-statement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }