Finance Minister Enoch Godongwana's 2024 MTBPS receives varied responses, reflecting differing visions for South Africa's economic future among political parties. File Picture: Armand Hough / Independent Newspapers
South African political parties have expressed mixed reactions to the 2024 Medium-Term Budget Policy Statement (MTBPS) delivered by Finance Minister Enoch Godongwana on Wednesday, October 30.
The MTBPS outlines South Africa’s approach to economic challenges, focusing on debt control, a 1.1% growth target, and improvements in tax collection despite existing shortfalls./
Key areas of focus include macroeconomic stability, structural reforms, infrastructure investment through public-private partnerships, and strengthening local government.
Initiatives highlighted in the policy address municipal debt relief, disaster readiness, and transparent procurement, with a particular emphasis on digital transformation in services such as social grants and health insurance.
Revenue allocation aims to boost local government, while South Africa's G20 presidency will spotlight African priorities on global issues.
Reactions to the MTBPS vary among political parties. The African National Congress (ANC) supports it, viewing the statement as a pro-growth agenda aimed at addressing the country’s economic challenges.
The ANC welcomed the budget, stating, “the resolute Medium-Term Budget Policy Statement sets out a pro-growth agenda to address South Africa’s prolonged economic and fiscal weaknesses.”
The Democratic Alliance (DA) has also endorsed the MTBPS, highlighting that it aligns with their political objectives.
They emphasised key reforms, including ending Eskom’s monopoly to enhance electricity competition, opening the rail network to private sector involvement, ceasing bailouts for failing state-owned enterprises (SOEs), committing to debt reduction and fiscal responsibility, ending E-Tolls in Gauteng without additional costs to road users, and shifting government spending towards infrastructure investment rather than consumption.
In contrast, the Economic Freedom Fighters (EFF) have firmly rejected the MTBPS, criticising it as a neo-liberal policy that prioritises private sector interests over job creation, sustainable development, and meaningful economic growth.
The EFF claims the policy statement promotes programs that entrench apartheid-era economic policies, prioritising profits for the "racist private sector“.
They argue that the MTBPS abandons the National Development Plan (NDP) and neglects the establishment of a state bank or sovereign wealth fund, both seen by the party as crucial for financial inclusivity and economic stability.
The EFF also accuses the National Treasury of mismanaging the economy, pointing out that GDP growth has consistently underperformed against global averages.
They dismiss the Treasury’s projected 1.8% growth as unrealistic and oppose the government's increasing reliance on privatisation in public services, condemning "Operation Vulindlela" as an IMF-inspired agenda that weakens state capacity to deliver essential services in sectors like water, rail, and sanitation.
Furthermore, the EFF alleges that infrastructure spending is being centralised to benefit politically connected companies, mismanaging debt at the expense of basic services, and prioritising bondholders over essential public spending.
They warn that the MTBPS will exacerbate poverty, inequality, and unemployment, driving further economic decline and instability in South Africa.
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