COSATU is deeply dismayed by Treasury’s shocking proposals to impose ill-considered cuts across the state
The Congress of South African Trade Unions (COSATU) is deeply dismayed by National Treasury’s shocking proposals to impose ill-considered cuts across government as it prepares to table the Medium-Term Budget Policy Statement. The Federation is shocked Treasury has tabled proposals to close various departments and key government programmes, reduce the public service headcount by 200 000 and raise VAT by 2%, in addition to freezing vacancies and suspending infrastructure investments.
Whilst we appreciate the real fiscal constraints facing the state and the need to cut fat and reprioritise expenditure, the suggestions offered by Treasury of slashing expenditure and further decapacitating the state when the economy is in desperate need of stimulus and a well-oiled and capacitated public services, will only serve to choke the economy and further weaken an already enfeebled government.
If government wants to cut wasteful expenditure, then it needs to reverse the offensive increases it has given to Members of Parliament and the Legislatures earlier this year and just 2 weeks ago to Councillors. Cabinet can abandon the litany of perks it feels entitled to. Government should slash the number of Ministers from 28 to 20 and Deputy Ministers from 34 to 5 as well as the 10 000 Councillors loitering about dysfunctional municipalities.
What is needed is to grow the economy. That is the only sober path to pay down our worrying debt trajectory. Outsourcing the bill to police officers and pickpocketing nurses is not a solution. If we are to grow the economy and reduce unemployment, and thus collect the revenue the state needs to reduce debt, then government needs to deal with the actual obstacles suffocating the economy, workers and businesses, namely to: