‘Smoke and mirrors don’t feed SA’

The Budget Justice Coalition (BJC), an alliance of 20 civil society organisations, believes Finance Minister’s Tito Mboweni’s midterm budget failed to address increasing levels of poverty and inequality.

Gilad Isaacs, co-director of the Institute for Economic Justice and a member of the BJC, said economic stimulus in a time of austerity was “a magician’s trick”.

“Smoke and mirrors do not put food on the table for the poor,” he said.

“The message coming from a government on whose watch massive state capture was effected ... to its electorate on whose behalf it governs, declared no intent to alleviate their plight. There has been no attempt to redress the impact that the regressive VAT (value-added tax) increase has had in exacerbating people’s hunger and no promise of a better future.

“Any party interested in obtaining a majority in the next election should commit to providing social security coverage for all. Economic stimulus and development go together,” said Isaacs.

While fiscal constraints were blamed on corruption scandals, malfeasance and the VBS Bank cash heist, all happened “under the watch of the same government”, he said.

“Not once have we heard a penitence, a mea culpa of this government of the people to the people. Rather, those most dependent on government delivery – the poor – are expected to tighten their belts once again.

“Our rulers seem to marvel at the slow economic growth and lack of economic turnaround. According to the 2017 general household survey, 44% of households consumed less than R2 500 per month.

“The president’s recovery plans set out in the minister’s speech are useful, but not a single plan referred to the actual well-being of ordinary people. Our unemployment rate conservatively sits at 27%, or six million people of working age.

“This definition excludes 2.8 million discouraged work seekers and other people outside of the labour force, making up an additional 12.5 million,” Isaacs said.