GNU differences postpone budget speech while People’s Budget petition falls on deaf ears

The budget speech was postponed to 12 March due to disagreement between the political parties that form the government of national unity. The general secretary of the South African Federation of Trade Unions, Zwelinzima Vavi, described the surprise move as clear evidence that the African National Congress (ANC), represents the interests of the ruling elite at the expense of the poor majority.

Vavi was speaking during a protest by the People’s Budget Campaign that was held outside of parliament before the postponement of the budget speech was announced. A journalist had informed him that a cabinet meeting had been convened by the ANC earlier in the day to try and get the rest of the parties in the government of national unity to agree on an increase in value added tax from 15% to 17%. “We are told that these guys convened a cabinet meeting today to get support in order to beat everybody including the Democratic Alliance into line to support the decision. They are promising that they would cushion the poor by giving more zero-rated foods,” Vavi said.

“We can’t believe that these guys have the gall in the midst of this hard-biting austerity programme to increase the VAT, which is a regressive tax system that they know is going to impact the working class and the poor whilst shielding the money-class, the 1% that owns up to 45% of all the wealth of this country,” he said.

Zwelinzima Vavi on the proposed VAT hike. Video by Sindile Gulwa

Responding to the proposed VAT increase, Kennet Matlawe, a housing activist and a member of Housing Assembly, shared his outrage. “Even the little R5 that I have now would be divided into half to fund the state. We know the state has issues with accountability and transparency. There is so much corruption there, so taking more money from the poor is not the solution. We must tax the rich,” he said.

Speak out against austerity measures

Community-based organisations around the country under the umbrella of Cry of the Xcluded collected 100,000 signatures on a petition against the austerity measures.

Neliswa Nkwali from the Treatment Action Campaign said that the cuts to the health budget have had a negative impact on the provision of health services as patients now have to queue for much longer because of staff shortages.

The People’s Health Movement says that budget cuts in public health have had a negative impact on the poor.

Jackie Majawie from Ubuntu Queer Collective also highlighted the damage caused by cuts to healthcare. Majawie, who also sits on the Western Cape health department committee to ensure that trans and gender diverse people’s needs are provided for, told Elitsha that there is a backlog in referral letters for those in the rural parts of the province who want to access services in urban areas. Majawie said that transgender and men’s health clinics are closing down. “Wits RHI and Health4Men have been closing their doors and our queer community members are scared to visit our day hospitals,” she said.

“When we talk about austerity, we are not talking about something that is far away from us because when the state opts for cheaper options of housing like upgrading and re-blocking of informal settlements, that is about budget cuts and austerity measures,” said Matlawe from Housing Assembly.

Tension between trade union and community leaders

Tension between the trade union and the community leaders within the People’s Budget coalition burst into the open as the latter group felt that they had been sidelined while the union leaders were not involved in the hard work of getting signatures to the petition. Last night, Vuyokazi Made, an activist from Gqeberha and a member of Cry of the Xcluded, said that residents did not all welcome them knocking on their doors trying to get the views of community members on budget cuts.

The protesters called for government’s commitment to, and timelines for, the implementation of a universal basic income grant.

On Wednesday, some of the community leaders booed the trade union leaders and did not allow them to address the protesters. Mahlubandile Khuhlane from Unemployed Peoples Movement said that they were disrespected by the finance minister, who refused to accept the People’s Budget petition, and by the trade union leaders at the march.

“When you are starting an alliance, it must be done in an honest arena … and when we are here our communities are not respected. And I want to address one thing, UPM in Makhanda, Amandla in Gqeberha, IKORA in Komani, Iyanda in Monti, SAGRC in Mpumalanga, Sisonke in Gauteng, BUM in Free State, Cry of the Xcluded in Cape Town, Intlungu yase Matyotyombeni in Cape Town – all of these are movements that have spoken to the people. Today we have brought 100,000 signatures from all corners of South Africa and Godongwana is still not willing to listen,” he said.

The People’s Budget calls for amongst other demands, the reduction of food prices, pro-poor economic policies, adequate funding for public services, an end to privatisation and for the government to address the issue of mass unemployment.