Budget widely welcomed, but Cosatu says it's uninspiring and jaded
Eskom’s challenges in conducting key maintenance and keeping the lights have a drag on the economy and on new investment, the minister said.
The deal comes with conditions, including that the company does not borrow any additional funds or grant salary increases, like the 7% it granted to workers last year, which will be detrimental to Eskom’s financial position.Godongwana offers to scrap two thirds of Eskom's debt if it meets strict conditions, increases public debt
Of the budget, 60% went towards social transfers highlighting the desperate situation that many South Africans find themselves in, in an economy that has not been able to grow around the 5% growth required to create jobs and less dependence on the state for survival for many households. “The budget does not provide hope of a decisive set of bold interventions that will jolt the economy from a projected growth of 0.9% in 2023, 1.5% in 2024 and 1.8%. It is self-delusional to believe that a timid budget will spur the economy to grow and slash unemployment,” the federation said.
Godongwana also provided R1 billion to SAA to assist with the business rescue process, and the Post Office currently in dire straits and in the process of retrenching half of its staff was allocated R2.4 billion.Allocations for these state-owned companies will be accompanied by strict conditions to ensure sustainability, accountability and transparency. If the conditions are not met, the money will not flow.
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