COSATU Submission on the 201718 Budget Economic Context

COSATU Submission on the 2017/18 Budget

Economic Context – Job creation plans; – Triple challenges and apartheid legacy; – Domestic jobless and low growth; – Increasing frustrations; and – Business as usual vs. radical economic transformation.

Fiscal Responses n n n Austerity vs. economic stimulus; Infrastructure and social expenditure; Debt levels and external debt.

Revenue Proposals – VAT; – Income tax increase for high earners; – Below inflation tax bracket adjustments; – Luxury goods and non-essential imports; – Reinvestment, local procurement and beneficiation; – Company tax; and – Border Management Agency.

Expenditure Public service vacancies & PSCBC; n Wage bill gaps; n SOE executive pay; n Public representatives & office bearers; n District vs. Local Councils; n Consolidate departments, agencies, SOEs and councils. n

Expenditure continued Wasteful expenditure cut backs; n Bling expenditure; n Labour brokers and outsourcing; and n Corruption; n Cut catering, travel & ads; and n Government garage cars. n

Expenditure continued Local procurement regulations; n Chief Procurement Officer: n – Government building construction; – Municipal and SOE deployments; and – Municipal and SOE procurements. n Single elections.

Trade and Industry and Economic Development Job creation & protection macro-plan; n Manufacturing and reindustrialisation: n – Motor manufacturing, textiles, agriculture and tourism. Budget allocation; n Jobs Fund; and n Consolidate departments. n

Mineral Resources Job losses; n Safety; n Beneficiation; and n Rehabilitation. n

Financial Sector Transformation; n Investment strike; n Collusion; n Job creation and decent wages; and n Parliamentary and Nedlac processes. n

Social Development n Social grants pending crisis; – Post Office and Bank; and n Comprehensive Social Security Discussion Paper.

Health National Health Insurance funding; n Public health facilities; n Vacancies; n Sugar tax; and n ARVs. n

Higher Education and Training NSFAS increases; n NSFAS threshold; n Free education; and n TVET Colleges, SETAs; and NYDA. n

Basic Education n Infrastructure expenditure; – Mud schools and latrines; – Text books; and n Non-payment of salaries.

COGTA and Public Works n CWP and EPWP as a source of cheap labour.

Basic Education Infrastructure expenditure; n Mud schools and latrines; n Vacancies; and n Text books. n

Energy Renewable energy investment and jobs; n Legislated mass roll out; n Solar panel targets; n Eskom tariffs; and n Nuclear energy. n

DIRCO Trade promotion; and n Embassy construction. n

Public Enterprises n Governance crises plans: – Retrenchments, labour broking, outsourcing and corruption; Shareholder Management Bill; n SAA, SA Express and Mango; and n SABC, SA Post Office and Telkom. n

Police VIP Protection Unit; and n Decline in force levels n

Agriculture, Forestry and Fisheries Land restitution; n Farm worker equity and land; n Support and subsidies for sector and emerging farmers; and n Aquaculture. n

Transport PRASA; n SANRAL and E Tolls; and n Public transport. n

Water, Sanitation & Environment Water infrastructure; n Local government intervention; n Tariffs; n Desalination; n Rain and grey water legislated roll out; n Informal areas; and n Climate change targets. n

Conclusion n 35% unemployment; n. Business as usual vs. job creation; n. VAT and progressive tax reform; n. Wasteful expenditure and prioritisation; n. Wage bill and public service vacancies;

Continued n. NHI; n. Social security; n. Renewable and nuclear energy; n. Water crisis; n. Education; n. Outsourcing, retrenchments and labour broking; and n. Parliamentary reports.