Cosatu cautious while economists welcome South Africa's Budget 3.0 adoption

THE Congress of South African Trade Unions (Cosatu) has adopted a cautious stance following the recent passage of Budget 3.0, even as economists have largely welcomed the budget's provisions.

- YOGASHEN PILLAY

On Wednesday, the budget, which outlines fiscal frameworks and revenue proposals for the 2025/26 financial year, was adopted by Parliament, marking a critical moment for South Africa’s economic management amid fiscal challenges.

While Cosatu acknowledged certain important allocations, including the government's decision to retract a proposed VAT increase, which the union believed would have placed undue pressure on workers grappling with rising living costs, concerns linger over whether the budget will provide the economic stimulation required during this precarious time.

“Cosatu cannot support tax hikes upon the working class and the poor, who are already highly indebted,” said the union federation in their official response.