Budget 2022: cuts to essential public services are expensive and unaffordable

The Institute for Economic Justice contends that the 2022 South African budget prioritizes 'fiscal consolidation' over fundamental human rights, leading to real-term funding cuts in health and education. The author argues that these 'false economies' increase long-term costs and social volatility, citing the R50-billion damage from the July 2021 riots as a warning of the costs of inequality. The document calls for Parliament to reject the budget and demand a version that does not violate the Constitution.

• The 2022 budget implements austerity and 'fiscal consolidation' that the author describes as a gamble, hoping that reducing taxes for the wealthy will stimulate investment and employment.
• Funding for the health budget is projected to decrease by an average of 4.3% in real terms annually over the next three years, which may undermine the prevention of non-communicable diseases, HIV, and TB.
• Expenditure on learning and culture is expected to decrease by R13.5-billion, or 2.5%, between 2021/22 and 2024/25.
• Social protection spending is averaging a 3.0% annual reduction over the Medium-Term Expenditure Framework, driven by below-inflation increases for grants like the Child Support Grant and uncertainty regarding the extension of the R350 Social Relief of Distress (SRD) Grant beyond 2023.
• The document highlights the high cost of social instability, noting that the July 2021 riots caused over R50-billion in direct damage and 374 deaths, requiring a R22-billion budget allocation for Sasria.

APA

Heywood, M. (2022). Budget 2022: cuts to essential public services are expensive and unaffordable. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/budget-2022-cuts-to-essential-public-services-are-expensive-and-unaffordable/

Chicago

Heywood, Mark. Budget 2022: cuts to essential public services are expensive and unaffordable. Institute for Economic Justice, 2022. https://iej.org.za/press-room/in-the-media/budget-2022-cuts-to-essential-public-services-are-expensive-and-unaffordable/.

Wikipedia

{{cite press release |last1=Heywood |first1=Mark |title=Budget 2022: cuts to essential public services are expensive and unaffordable |publisher=Institute for Economic Justice |date=1 March 2022 |url=https://iej.org.za/press-room/in-the-media/budget-2022-cuts-to-essential-public-services-are-expensive-and-unaffordable/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{heywood2022budget, author = {Heywood, Mark}, title = {{Budget 2022: cuts to essential public services are expensive and unaffordable}}, publisher = {Institute for Economic Justice}, year = {2022}, month = mar, url = {https://iej.org.za/press-room/in-the-media/budget-2022-cuts-to-essential-public-services-are-expensive-and-unaffordable/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }