Trade union federation Cosatu has warned Minister of Finance Enoch Godongwana not to sacrifice workers at the altar of fiscal austerity when he delivers the revised 2025/26 national budget on Wednesday.
This comes after the March budget sparked a widespread backlash, with a proposed VAT increase scrapped following a court challenge by the EFF.
The budget also exposed tensions within the fledgling government of national unity (GNU), now under pressure to reconcile fiscal responsibility with pro-poor commitments.
“We cannot afford a return to the brutal austerity budget cuts inspired by a misplaced belief in neoliberalism that has crippled frontline public services, which the working class require to survive,” said Cosatu parliamentary coordinator Matthew Parks this week.
Godongwana is set to table the 2025 budget amidst growing tensions in the GNU that led to the historic first time postponement of the budget speech in March.
Last month, Godongwana advised that “the revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act”.
He said this would include formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the GNU as well as cabinet approval before presentation to Parliament.
Cosatu has, however, strongly warned against “deluding society into thinking that inflicting pain upon the poor and the working class is a path to economic growth and prosperity”.
“The economy will only grow if we fix the state, stimulate growth and slash unemployment. It will not grow by squeezing already badly under-resourced public services further,” Parks said,
Cosatu listed demands including support for Eskom, Transnet and Metro Rail, stabilisation of dysfunctional municipalities, infrastructure investment, and protection of education, law enforcement and health.
The federation also rejected any personal income tax increases on workers.
