Fedusa says budget must tax the rich and put people before profits

South Africa needs a budget that puts people before profits, strengthens public services, creates jobs and ensures economic justice, the Federation of Unions of SA (Fedusa) said on Tuesday.

It said any increase in VAT would deepen economic suffering and a reduction in the social relief of distress (SRD) grant would push millions further into poverty. 

With rising living costs, collapsing public services and job insecurity threatening millions, Fedusa said, finance minister Enoch Godongwana must deliver a budget on Wednesday that puts workers and the poor first.

“Anything less would be a betrayal of the country’s working class majority,” Fedusa said.

The federation demanded the expansion of the SRD grant as a step towards a permanent basic income grant. It also demanded higher taxation of the wealthy and large corporations to fund social support.

Fedusa said austerity had failed, had destroyed jobs, starved public services and widened inequality.

The federation said it rejected any budget that imposed further cuts on essential services while failing to invest in long-term economic recovery.

“The government must increase public investment in infrastructure, health and education to drive sustainable job creation, expand industrial support to protect manufacturing, technology and the renewable energy sector and end reckless budget slashing that crippled institutions like the CCMA and labour courts, which were critical in protecting workers.

Fedusa rejected any attempt to implement a payment break on employer contributions to the Government Employees Pension Fund.

“This reckless proposal would weaken the long-term financial security of public servants and pensioners. Workers are not an ATM for government inefficiencies.”

The federation condemned the government’s failure to implement a “fair tax system that ensures the wealthiest pay their fair share”.

“Instead of punishing workers and the poor, the government must strengthen Sars' capacity to aggressively target tax evasion by the ultra-rich and big business, end illicit financial flows that rob South Africa of billions in lost revenue each year and expand progressive tax policies that reduce the burden on low- and middle-income earners while holding corporate giants accountable.”

Fedusa called for the revival of state-owned enterprises (SOEs). It said the collapse of SOEs like Transnet and Eskom was a direct consequence of mismanagement, corruption and underfunding.

“Fedusa rejects privatisation and demands a transparent and worker-centric recovery plan for all SOEs, increased accountability to root out corruption and inefficiency and a moratorium on retrenchments, with investment in worker skills development.”

Fedusa said the withdrawal of US funding for HIV/Aids programmes will have catastrophic effects.

“Fedusa insists that the government finds alternative funding sources to sustain critical health services, strengthens partnerships with private and global health organisations and develops a self-sustaining, long-term funding model for public health.”

TimesLIVE