finance

2017 South African Budget Speech: No Pravin, it was not progressive nor redistributive

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by Shawn Hattingh (ZACF)

First published at Pambazuka.org

Credit: Daily Maverick
Credit: Daily Maverick

On Wednesday, the Minister of Finance of South Africa stood up in the circus that passes itself off as a National Parliament and without any sense of irony what-so- ever declared that the South African state’s budget for 2017 was redistributive and progressive. If the Minister was to be believed, therefore, the budget was aimed at making a dent in the substantial class and racial inequalities that exist in the country. To back this up, supporters pointed out that the tax rate on top earners was raised marginally in the budget and people receiving dividends from shares would have to pay 5% more on these in tax. Despite this, one word could sum up the idea that the budget presented was redistributive and progressive: bullshit.

Rather the budget presented by Minister Pravin Gordhan was yet again another attack on the working class. What the budget did was to favour corporations at the expense of the poor. In doing so, it remained based on the neoliberal dogma that has defined South Africa’s post-apartheid politics. In other words, the budget was a vivid demonstration of how the state is an instrument and weapon of the ruling class that functions to benefit that class. This can be seen throughout the budget, including how the state plans to raise money and how it plans to spend it.

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