The Congress of South African Trade Unions (COSATU) presented its submission on the 2026/27 Budget’s Division of Revenue Bill and the 2025/26 Budget’s Special Appropriation Bill to Parliament’s Standing Committee: Appropriation.
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 Budget, it fails to respond decisively to the fundamental crises facing the working class and the economy, in particular a 41.1% 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 on 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 are improved is to ensure that frontline public services have the resources needed to fulfill their constitutional and developmental mandates. We welcome investments in health and education, in particular R18 billion allocations to enroll 300 000 Grade R learners; R7.8 billion for the National Health Insurance Grants, plus R24 billion for revitalising public healthcare, R92 billion for district health programmes, the building of seven new provincial hospitals and R21 billion for the employment of doctors over the MTEF.
Local government remains the state’s Achilles’ heel, 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 the 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. However, 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.
Much more must be done to enable Eskom to reduce the price of electricity, plus 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.
The absence of a bold stimulus package for SMMES, industrial and export sectors badly needed for boosting economic growth and jobs is deeply worrying. It is beyond disappointing that the Presidential Employment Programme has been cut by half despite SONA’s commitments to increase it.
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. COSATU will be seeking urgent engagements with Treasury and government to ensure these failures are addressed. We cannot afford to continue to normalise 1% economic growth nor 41.1% unemployment. The patience of the working class and society are not unlimited.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za