The Congress of South African Trade Unions (COSATU) presented its submission on the 2026/27 Budget’s Appropriation Bill to Parliament’s Standing Committee: Appropriations.
COSATU is extremely disappointed with the lackluster 2026/27 Budget and Medium-Term Expenditure Framework. Whilst appreciating that there are some important allocations that COSATU campaigned for in the Bill, as an overall package it fails to respond decisively to the fundamental crises facing the working class and the economy, in particular a 43.7% unemployment rate, economic growth far below the 3% needed to create jobs, struggling public and municipal services and State-Owned Enterprises (SOEs), entrenched levels of poverty and inequality, and endemic crime and corruption. Tragically the Budget is focused on balancing the books not at aggressively kickstarting economic growth or tackling unemployment.
Key to providing an environment where the economy can take off and the lives of the working class improved, is to ensure frontline public services have the resources needed to fulfill their constitutional and developmental mandates. We welcome positive allocations for health and education, in particular R7.8 billion for the National Health Insurance Grants, R24 billion for revitalising public healthcare, R92 billion for district health programmes and R21 billion for the employment of doctors over the MTEF; and the recruitment of 3 000 staff to digitise civic services at Home Affairs. Progress made eradicating over 4 323 ghost posts plus to digitise public procurement will help free funds for frontline services. We are deeply worried that no funds have been allocated for the 10 000 permanent labour inspectors pledged in the State of the Nation Address (SONA).
Local government remains the Achille’s heel of the state with more than 60% of municipalities in financial distress and many struggling to provide basic services or pay staff. The allocation of R27 billion to improve metros’ abilities to provide basic services and bill correctly is critical as are plans to strengthen national government’s ability to timeously intervene in and hold failing municipalities accountable. Plans to connect over 320 000 houses to electricity and roll out 258 000 smart meters are welcome. These interventions do not go far enough to capacitate often highly dysfunctional municipalities, tackle rising municipal debt or deal with corrupt and incompetent municipal management.
COSATU commends the substantial progress made stabilising and rebuilding key SOEs. We, however, remain deeply opposed to Eskom’s unbundling. More must be done to enable Eskom to reduce the price of electricity, return Transnet and Metro Rail to full capacity to unlock mining, manufacturing and agricultural jobs as well as to provide efficient public transport for urban workers. The substantial infrastructure investments over the MTEF of R1.07 trillion, in particular for energy, rail, ports, water, roads and airports will help boost economic growth and jobs. We are dismayed by the lack of real turnaround plans to set Denel, the South African Broadcasting Corporation, Post Office and Postbank on the path to recovery.
SONA committed government to a bold plan to tackle our unacceptably high levels of crime and corruption, yet no new meaningful allocations have been provided for the Police, the Prosecuting Authority, Hawks or Judiciary to ensure they have the personnel, skills or infrastructure capacity to win this existential war. Additional allocations for the Border Management Authority as well as for the South African National Defence Force are important boosts, but the latter falls short of ensuring our military personnel receive the full support they require, in particular three meals a day.
The absence of a bold stimulus package for SMMES, industrial and export sectors badly needed to boost economic growth and jobs is deeply worrying. Allocating a meagre R3 billion for Small Business Development whilst providing R4 billion for bodyguards for politicians and cutting funding for the Department of Trade, Industry and Competition by 10% highlights the crisis of budget priorities.
COSATU is deeply angered that yet again not even an inflationary adjustment has been provided for the 8 million SRD Grant recipients, yet Members of Parliament were militant in demanding an increase for themselves over December. It is equally shameful that allocations for the NSFAS threshold have not been adjusted for inflation. It is disappointing that the Presidential Employment Programme has not been increased despite SONA’s commitment to do so, and in fact has seen its funding cut by half.
We are bewildered that more resources to boost the South African Revenue Service’s efforts to improve tax compliance have not been provided beyond a measly 2% annual adjustment.
Although there are important allocations for some frontline services and infrastructure, COSATU is extremely frustrated that Treasury and government collectively, have once again reduced the Budget to balancing books and missed the opportunity to table a bold stimulus package that would fix public and municipal services, spur economic growth, boost employment, provide relief for the poor and unemployed, and ramp up tax compliance. We cannot afford to continue to normalise 1% economic growth nor 43.7% unemployment. The patience of the working class and society are not unlimited.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator) on 082 785 0687 or Tony Ehrenreich (COSATU Deputy Parliamentary Coordinator) on 082 773 3194