Finance Minister Enoch Godongwana presented the 2024 Medium-Term Budget Policy Statement to Parliament. Picture: Armand Hough / Independent Newspapers
Going downtown to listen to the Medium-Term Budget, I expected to be underwhelmed.
I have listened to Budget speeches and Medium-Term Budget Policy Statements over the past eleven years, and each time, I have walked away feeling disappointed, seeing how the slippery slope of unemployment gained momentum.
Last week, as I sat waiting for the Finance Minister to address the nation, I prayed that under the Government of National Unity, I would see rays of hope shining through. This time, I was not disappointed.
At last, the government has acknowledged that above-inflation increases cannot be granted indefinitely, and that funds need to be directed towards infrastructure to create employment.
We are all acutely aware that the Public Service Coordinating Bargaining Council (PSCBC) has seen demands from the 1.3 million public servants for a 6% increase.
In the past, the government has been pressured into granting this, fearing potential strikes.
Up until last year, the possibility of a strike – and the political fallout it could bring – was too severe to contemplate.
To be clear, a strike remains a daunting prospect with potentially severe consequences.
Over a million public servants on strike could cripple what remains of service delivery in South Africa.
However, granting an above-inflation increase to the country’s largest workforce would undoubtedly cripple our economy.
The Minister of Finance is faced with an unenviable challenge: balancing the unaffordability of these increases with the risk of a strike.
Yet, it is encouraging to see that the Treasury has now rejected the proposal, and negotiations continue.
As a country, we need to be prepared for such a possibility and stand firm to prevent a public servants’ strike from stalling the country.
The Treasury has set us on the right path, and with spending directed towards public works and structural projects, we can hope to see more job creation and a gradually revitalised economy.
It is worthwhile for us all to read the Medium-Term Budget Policy Statement.
I know Deputy Minister Ashor Sarupen has been working tirelessly to ensure that the Ministry upholds our democratic values, building on the foundation laid by
Tito Mboweni, who once advocated for job creation, progressive labour market reform, and a modernised monetary policy.
Unfortunately, many of these structural reforms were shelved due to resistance from the trade union movement.
Ashor Sarupen is passionate about infrastructure spending and growing an economy that creates jobs.
All of us have observed the growing business confidence and our trading partners' renewed trust in South Africa.
Economic growth is what we all seek. As a labour lawyer, I hear from clients that they are exploring ways to employ more people.
Infrastructure growth promises a boon for job creation.
It was heartening to hear that the private sector has invested in renewable energy projects, and that data costs have dropped by 50%.
Even the e-Visa system for travellers from 34 countries will boost employment in South Africa.
Well done, Minister Schreiber.
* Michael Bagraim.
** The views expressed here are not necessarily those of Independent Media.
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