COSATU notes the National Assembly’s passage of the Division of Revenue and the 2nd Adjustments Appropriation Bills

28 March 2024

The Congress of South African Trade Unions (COSATU) notes the National Assembly's passage of the Division of Revenue Bill allocating funds to provincial and local government in the 2024/25 financial year and the Second Adjustments Appropriation Bill providing for the final adjustments in appropriations to Departments in the 2023/24 financial year.

We welcome the major thrust of the DOR Bill, the R943 billion investments in key infrastructure over the Medium-Term Expenditure Framework, in particular in water, roads, schools and sanitation. If fully spent, this will not only help overhaul and modernise at times aging infrastructure, but also provide a massive boost to the economy and job creation.

The planned intervention and capacitation programmes in 140 municipalities to tackle corruption, reduce wasteful expenditure and improve municipal service delivery are welcome and badly needed given the very concerning state of many struggling rural municipalities.

COSATU remains deeply concerned about the impact of cuts and below inflation budget adjustments to several key frontline departments and the effect these may have on their ability to deliver quality public services.

We are dismayed that Treasury missed the opportunity to increase funding for the Presidential Employment Stimulus which has played an invaluable role in helping over 2 million young people enter the labour market, earn a salary and gain skills and experience critical to finding long term employment. This is an unhelpful trend that Cabinet and Parliament must halt in the Medium-Term Budget Policy Statement.

It is critical that Parliament, both the 6^th and the 7^th, increase its oversight role over departments, entities, municipalities and State-Owned Enterprises, to ensure funds are spent correctly, and corruption and wasteful expenditure are substantially reduced.

Issued by COSATU.

For further comment please contact:

Matthew Parks

Acting National Spokesperson & Parliamentary Coordinator

Cell: 082 785 0687

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