'As the government grapples with a growing fiscal crisis, it’s the most vulnerable – those who rely on social welfare payments like the R370-a-month Social Relief of Distress grant – that are likely to bear the brunt of these cuts.’ File Picture: Leon Lestrade. African News Agency/ANA.
The recent announcement of budget cuts by the national government is a stark reminder of the harsh reality faced by the poorest citizens in our country.
As the government grapples with a growing fiscal crisis, it’s the most vulnerable – those who rely on social welfare payments like the R370-a-month Social Relief of Distress grant – that are likely to bear the brunt of these cuts.
While the government scrambles to raise revenues to meet its statutory obligations, the methods being employed, such as the two-pot withdrawal scheme, feel more like desperate measures than well-thought-out policies.
The two-pot withdrawal scheme, designed to allow citizens limited access to their retirement savings, is one of the government’s new revenue-raising tools.
While this may provide a temporary influx of funds to government coffers, it is unlikely to have any lasting benefit for the poor. In fact, once the government has increased its revenue, there is no guarantee that these funds will trickle down to those who need it most.
Historically, revenue increases have seldom translated into meaningful improvements for the poor, and there is little reason to believe that this time will be any different.
Middle-class families are not spared from the impact of these cuts either. With the Western Cape Education Department announcing that more than 2 400 teaching jobs will be cut starting January 2025, public education is facing a crisis.
The department’s struggle to fund 36% of the nationally negotiated wage agreement has resulted in a R3.8 billion budget shortfall, even after a drastic R2.5bn budget cut that froze non-educator staff posts.
This means parents with children in former Model C schools will probably face steep fee increases as schools attempt to offset the funding gap.
These cuts, combined with the existing 21% educator vacancy rate, threaten to undermine the quality of education for all but the wealthiest citizens. As always, it’s the poorest who will feel the effects most acutely, trapped in a cycle of underfunded services and broken promises.
The government must find a way to raise revenues without sacrificing the future of those who can least afford it. The country’s most vulnerable citizens deserve better than being an afterthought in budget balancing acts.
* Quinton Mtyala, is the Western Cape Regional News Editor.
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