Annisa Essack | kzn@radioislam.org.za
23 February 2023 | 11:00 AM CAT
3 min read

Photo Credit: Section27

Finance Minister Enoch Godongwana has announced that the government will take on half of Eskom’s debt at R254 billion to alleviate load shedding in the country. SECTION27 says the country is desperate to resolve the energy crisis, particularly in South African hospitals and health facilities, welcomed the move.

Daniel McLaren, Budget Analyst and Senior Researcher at SECTION27, spoke to Radio Islam International, saying that the Finance Minister had a “tricky budget” as South Africa emerged from the COVID-19 pandemic into an ESKOM load-shedding crisis. He added that with ESKOM’s many challenges, the minister was “treading a cautious balancing act with ESKOM.”

McLaren noted that the “rhetoric of the minister’s speeches had become more defensive” distracts from the fact that spending on most social wages has declined except for the SRD grant. The decline has occurred for over a decade, and even the social grants outside the SRD grant have not increased in line with inflation, especially over the last two years. He added the actual value of the grants was eroded.

“That was slightly fixed in this budget but not completely because if you don’t increase the level in line with inflation for two years, and then you just increase it by one year inflation in the third year, you’re still behind.”

He went on to say there was a decline in spending in the education and health sectors. Since 80-85% of South Africans utilise these public schools and health facilities when less money is spent on these areas, there is a reduction in the attempts to combat equality.

“If you decide not to increase taxes, but you decide to cut spending, then you are really saying that the people we want to protect are the top 20% of income earners. So, we are prepared to sacrifice the population that uses the government’s public services.”

McLaren added there was frustration regarding the electricity crisis not helping the situation, and they hoped to see a resolution soon.

Speaking about the current State of Disaster regarding the flooding around the country, he says the central government is allocating funds. He doesn’t see funding shortfalls as a challenge but as to how the municipalities will manage the funds.

Listen to the full interview on Sabahul Muslim with Ml Junaid Kharsany and guest SECTION27’s Daniel McLaren, Budget Analyst and Senior Researcher.