MTBPS: 'Socio-economic stagnation' will persist until the vulnerable are considered - Unions

Some labour unions believe the National Treasury missed the mark on some key issues in the Medium-Term Budget Policy Statement (MTBPS).

Minister of Finance Enoch Godongwana delivered the "mini budget" in Parliament on Wednesday.

While economists have described the macroeconomic picture as better than expected, some unions are not sold on government’s policy stance.

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The NationalEducation, Health and Allied Workers’ Union (NEHAWU) said it rejects the National Treasury’s fiscal stance of growing the primary fiscal surplus, when it knows that the past decade of sustained budgetary cuts has devastated the capacity and capability of the public sector.

The union said this includes the provision of public services to the working class and rural poor, whilst seeking to draw additional spending through the dollar-denominated World Bank loans.

NEHAWU has also rejected the revision to the inflation targeting framework, which it said is not balanced with the utilisation of the monetary policy in pursuing the targeting of employment creation and economic growth rate.

The South African Federation of Trade Unions (SAFTU) said the mini budget offers false optimism in a broken economy.

SAFTU said while the National Treasury claims fiscal constraints prevent the implementation of a basic income grant, billions are lost to corporate tax evasion, illicit outflows and procurement theft.

NEHAWU and SAFTU believe what they term "socio-economic stagnation" will persist until steps are taken to ensure social protection of vulnerable households.

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