The KwaZulu-Natal Treasury has dismissed claims it is implementing “neoliberal austerity measures” resulting in a number of unfilled vacancies of frontline workers.
These claims were made by the National Education, Health and Allied Workers’ Union (Nehawu) when members picketed outside the KZN legislature in Pietermaritzburg before finance MEC Francois Rodgers’ 2025/2026 budget presentation in March.
Nehawu said the budget cuts made by the provincial Treasury since Rodgers took over the department with the inception of the government of provincial unity (GPU) left most departments understaffed, which had an adverse effect on service delivery.
The union called for government to do away with outsourcing, private-public partnerships and the permanent employment of community healthcare workers in accordance with a January labour court ruling.
They also voiced their frustration with the proposed 0.5% VAT increase and “unprecedented” increases in the Government Employees Medical Scheme contributions.
Responding to the union on Thursday, Rodgers said the province was not responsible for tax amendments.
“The province was similarly surprised by the announcement as no consultation took place with the province in this regard,” he said.
He also denied the “misled views” that the spending cuts implemented by the GPU were “neoliberal” and affecting service delivery.
Finance department spokesperson Nkosikhona Duma said the department had allocated 80% of its R158bn budget for 2025/2026 to ensure frontline departments such as health, education and social development were prioritised.
“Funds allocated to these departments are expected to ensure we continue to have teachers, nurses and social workers, while ensuring the procurement of quality supplies including but not limited to medication, schoolbooks and nutritious meals for indigent pupils.”
A further R26bn was allocated to economic services departments including transport, economic development, public works and agriculture to facilitate inclusive economic growth.
“This demonstrates the GPU’s commitment to poverty alleviation, job creation and the reduction of socioeconomic inequality.”
Duma said the cost-containment measures put in place were to sustain investment for service delivery priorities while cutting back on non-essential expenditure such as state-funded Christmas parties, luxury vehicle rentals for MECs and unnecessary international travel.
He said the fiscal constraints facing the province were not entirely its own doing, adding national government was partly responsible, in addition to poor policy formulation which has resulted in, for example, the “continued and unsustainable bailouts of state-owned entities”.
“This, coupled with state capture, was part of the reason KZN faced equitable share cuts of more than R60bn over the past four years. The result was every provincial department had its baseline budget cut. All this occurred before the establishment of the GPU.”
Duma noted the interventions made by the department under Rodgers had resulted in the provincial budget avoiding further cuts, contrary to previous years.
He added Rodgers was open to engaging union leaders to establish a collective budgetary process.
TimesLIVE
Nehawu misled on austerity measures claims, says KZN finance MEC
Image: SANDILE NDLOVU
The KwaZulu-Natal Treasury has dismissed claims it is implementing “neoliberal austerity measures” resulting in a number of unfilled vacancies of frontline workers.
These claims were made by the National Education, Health and Allied Workers’ Union (Nehawu) when members picketed outside the KZN legislature in Pietermaritzburg before finance MEC Francois Rodgers’ 2025/2026 budget presentation in March.
Nehawu said the budget cuts made by the provincial Treasury since Rodgers took over the department with the inception of the government of provincial unity (GPU) left most departments understaffed, which had an adverse effect on service delivery.
The union called for government to do away with outsourcing, private-public partnerships and the permanent employment of community healthcare workers in accordance with a January labour court ruling.
They also voiced their frustration with the proposed 0.5% VAT increase and “unprecedented” increases in the Government Employees Medical Scheme contributions.
Responding to the union on Thursday, Rodgers said the province was not responsible for tax amendments.
“The province was similarly surprised by the announcement as no consultation took place with the province in this regard,” he said.
He also denied the “misled views” that the spending cuts implemented by the GPU were “neoliberal” and affecting service delivery.
Finance department spokesperson Nkosikhona Duma said the department had allocated 80% of its R158bn budget for 2025/2026 to ensure frontline departments such as health, education and social development were prioritised.
“Funds allocated to these departments are expected to ensure we continue to have teachers, nurses and social workers, while ensuring the procurement of quality supplies including but not limited to medication, schoolbooks and nutritious meals for indigent pupils.”
A further R26bn was allocated to economic services departments including transport, economic development, public works and agriculture to facilitate inclusive economic growth.
“This demonstrates the GPU’s commitment to poverty alleviation, job creation and the reduction of socioeconomic inequality.”
Duma said the cost-containment measures put in place were to sustain investment for service delivery priorities while cutting back on non-essential expenditure such as state-funded Christmas parties, luxury vehicle rentals for MECs and unnecessary international travel.
He said the fiscal constraints facing the province were not entirely its own doing, adding national government was partly responsible, in addition to poor policy formulation which has resulted in, for example, the “continued and unsustainable bailouts of state-owned entities”.
“This, coupled with state capture, was part of the reason KZN faced equitable share cuts of more than R60bn over the past four years. The result was every provincial department had its baseline budget cut. All this occurred before the establishment of the GPU.”
Duma noted the interventions made by the department under Rodgers had resulted in the provincial budget avoiding further cuts, contrary to previous years.
He added Rodgers was open to engaging union leaders to establish a collective budgetary process.
TimesLIVE
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