Press Statement: Budget 2022/23 – A Lost Opportunity

The Institute for Economic Justice (IEJ) condemns the 2022/23 South African budget for prioritizing 'fiscal consolidation' and debt reduction over poverty alleviation and public service investment. The IEJ argues that the government is ignoring a revenue windfall of R181 billion to implement austerity measures that result in real spending cuts for healthcare and education, while maintaining an inadequate Social Relief of Distress (SRD) grant. The document criticizes the reduction in corporate income tax and the reliance on public-private partnerships (PPPs) for industrial policy, suggesting instead that progressive taxes on wealth and luxury goods should fund a Universal Basic Income Guarantee (UBIG).

• The South African government is pursuing a policy of 'fiscal consolidation' and austerity, accelerating its target for a budget surplus to 2023/4, which the IEJ claims occurs at the expense of vulnerable populations and public services.
• Real spending per person is projected to decline as overall non-interest expenditure remains stagnant at 0% annually from 2022/23 to 2024/25, despite a population increase and 4.8% inflation.
• Healthcare and education budgets face significant real-term cuts: consolidated healthcare expenditure is projected to decline by R12.6 billion (-4.3%) and learning and culture expenditure by R13.5 billion (-2.5%) between 2021/22 and 2024/25.
• The Social Relief of Distress (SRD) grant is extended for one year at a cost of R44 billion but remains capped at R350 per month, which is below the Food Poverty Line of R624.
• The IEJ argues that the government has a revenue windfall of R181 billion, largely from the mining sector, which could have been used to increase the SRD grant or support job recovery in mining and manufacturing.
• Industrial policy is criticized for relying on an 'outdated neoliberal PPP model' that has seen its value decline from R10.7 billion in 2011/12 to R5.6 billion in 2019/20.
• The budget includes a 1% reduction in corporate income tax, which the IEJ describes as a regressive measure that does not contribute to employment.
• To fund a Universal Basic Income Guarantee (UBIG), the IEJ proposes a 25% luxury VAT, a 1.5-3% Social Security Tax on high earners, and a Wealth Tax of 1% for the top 1% and 3% for the top 0.1% of South Africans.

APA

Institute for Economic Justice (2022). Press Statement: Budget 2022/23 – A Lost Opportunity. https://iej.org.za/press-room/statements/press-statement-budget-2022-23-a-lost-opportunity/

Chicago

Institute for Economic Justice. Press Statement: Budget 2022/23 – A Lost Opportunity. 2022. https://iej.org.za/press-room/statements/press-statement-budget-2022-23-a-lost-opportunity/.

Wikipedia

{{cite press release |author=Institute for Economic Justice |title=Press Statement: Budget 2022/23 – A Lost Opportunity |date=25 February 2022 |url=https://iej.org.za/press-room/statements/press-statement-budget-2022-23-a-lost-opportunity/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{instituteforeconomicjustice2022press, author = {{Institute for Economic Justice}}, title = {{Press Statement: Budget 2022/23 – A Lost Opportunity}}, publisher = {Institute for Economic Justice}, year = {2022}, month = feb, url = {https://iej.org.za/press-room/statements/press-statement-budget-2022-23-a-lost-opportunity/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }