Cosatu: Budget marks turning point in South Africa's democracy

THE 2025/26 Budget marks a turning point in South Africa’s young democracy. Itis up to us whether this is for the better or worse.

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The processes to pass the Budget are messy but we should not lose sight of the positive signs of a government that listens and is willing to adapt when society demands change.

Cosatu has opposed taxes such as a VAT hike as these would make the lives of working-class families already struggling to cope with the rising costs of living, supporting unemployed relatives, drowning in debt and battling to make ends; even more difficult.

We are pleased government humbled itself and heeded the cries of society to withdraw the proposed VAT hike. That is a moment to be applauded.

We remain a society with deep socio-economic crises from a 41.9% unemployment and a youth unemployment rate of 70%, to entrenched poverty and inequality, endemic crime and corruption, embattled public and municipal services and State-Owned Enterprises. These are exacerbated by tepid 1% economic growth placing the fiscus under severe pressure.

These are the ticking time bombs government and Parliament must be seized with and seen to be resolving. Society is correct to be impatient and hold government to high standards. Mediocrity and complacency should no longer be normalised.

Cosatu’s disagreements with government over the Budget's role over the years have been that we believe Treasury has been far too conservative in how the budget needs to be utilised to capacitate the state to deliver the public services the working class and businesses depend upon, to stimulate economic growth and create decent jobs.