COSATU has told Parliament that government’s latest budget bills fail to confront the crises facing workers.
The Congress of South African Trade Unions (COSATU) presented its submission on the Division of Revenue Amendment and Special Appropriation Bills to Parliament’s Standing Committee on Appropriations on 13 November 2026.
While acknowledging the many pressing demands facing the state, COSATU said government had missed the opportunity to table a bold package to tackle a 44% unemployment rate, weak economic growth averaging 1% for over a decade, entrenched poverty and inequality, high rates of crime and corruption, and embattled public and municipal services.
“Whilst it is important to place the budget’s debt and deficit on a sustainable trajectory, this cannot be at the expense of stimulating the very economic growth and job creation essential to South Africa’s recovery,” COSATU said.
“An unhealthy obsession with neo-liberal austerity budget cuts or in the case of the Medium-Term Budget Policy Statement, prioritising early retirement packages, is not a path to unlocking economic growth and slashing unemployment.”
COSATU described the Medium-Term Budget Policy Statement (MTBPS) forecast that South Africa will only reach the 3% economic growth needed to see unemployment fall in 2034 as “beyond depressing”. Unemployment has risen 2.4% this year alone.
COSATU welcomed the additional R4.5 billion allocation to the South African Revenue Service to boost efforts to tackle tax evasion and customs fraud, especially by the wealthy and illicit networks.
“We are encouraged by the tireless efforts of the South African Revenue Service’s employees to tackle tax evasion and customs fraud, especially by the wealthy and illicit networks and the additional R4.5 billion allocation to SARS to boost these efforts,” COSATU said.
“Government must now ease the increasingly suffocating tax burden upon the working class,” COSATU said.
COSATU said it remains extremely worried about the impact underfunding is having on the South African National Defence Force’s ability to fulfil its constitutional mandates.
It said it is equally concerning that the South African Police Service is not being provided with sufficient funds to employ additional personnel, in particular detectives and forensic investigators.
The federation welcomed the R1.25 billion boost to Border Management and R305 million for deportations, and noted Treasury’s intervention to provide R560 million to stabilise the Regular Force Medical Continuation Fund covering former SANDF members.
COSATU also welcomed the R217 billion approved allocations for 32 infrastructure projects as well as R242 million for support for emerging farmers, saying these will have a critical impact.
Additional allocations of R556 million for HIV/AIDS, R3.8 billion for District Health Programmes and R1.6 billion for pregnancy and child nutrition were welcomed. COSATU raised concern that the Department of Health has only met 56 of its 500 health facilities’ maintenance and refurbishment targets for the year.
COSATU also raised concern that the Department of Human Settlements has only achieved 13,000 out of its 62,000 new houses and 20,000 out of its 83,000 serviced sites annual targets.
COSATU described the state of local government as alarming. It noted the R28 billion interventions to restore billing capacity in the metros, R3.5 billion to roll out 250,000 electricity smart meters, R60 billion investments in water infrastructure, R21 billion for free basic services, and R6.2 billion towards infrastructure repairs including R1.46 billion for roads and R3.5 billion for municipal infrastructure.
COSATU said these do not go far enough, with debt owed to municipalities exceeding R480 billion and local government owing Eskom over R120 billion.
“Much bolder actions are needed to rebuild local government,” COSATU said.
COSATU criticised the failure to boost Public Employment Programmes to give hope to 13.2 million unemployed people. It described it as “beyond shameful” that despite R13 billion worth of savings in social grants, yet again there is no inflationary relief for the 8 million destitute SRD Grant recipients.
“Whilst there are positive parts to the MTBPS and the Bills, including allocations COSATU fought for, as an overall package it fails to respond decisively to the dire crises facing the working class and the economy; our 44% unemployment rate and stagnant economic growth,” COSATU said.
“Reducing the debt and the deficit is not a path to growth.”
COSATU said it will be seeking urgent engagements with government to ensure that a bold and progressive Budget that will invest in public and municipal services, stimulate economic growth and jobs, tackle crime and corruption, and provide relief and hope for the poor is tabled in Parliament.