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Austerity for the Masses, Profits for the Few: A Marxian Critique of Godongwana’s 2025 Budget by Staff Writer


On May 21, 2025, Finance Minister Enoch Godongwana presented his third attempt at the national
budget, a document that, under the guise of fiscal responsibility, perpetuates the neoliberal agenda of austerity. This budget, far from addressing the systemic issues plaguing South Africa, reinforces the capitalist structures that prioritize capital accumulation over the welfare of the working class.

The Illusion of Fiscal Responsibility

Godongwana's budget is anchored in the ideology of fiscal consolidation, a term often used to justify spending cuts that disproportionately affect the working class. The proposed R28 billion in spending cuts are not mere numbers; they represent a direct assault on public services such as healthcare, education, and social welfare programs. These cuts are justified by the need to stabilize public debt, yet they fail to address the root causes of the fiscal deficit, such as tax evasion by the wealthy and corporations.(Reuters)

Taxation: A Tool for Class Warfare

The budget's approach to taxation further exemplifies its class bias. While the proposed Value Added Tax (VAT) increase was withdrawn due to public outcry and legal challenges, the mere suggestion of such a regressive tax highlights the government's willingness to burden the poor to balance the books. VAT disproportionately affects low-income individuals, as they spend a higher percentage of their income on consumption. In contrast, the budget lacks substantial measures to increase taxes on the wealthy or to close tax loopholes exploited by corporations.(SABC News)

Privatization and the Erosion of Public Services

The budget subtly promotes the privatization of state-owned enterprises (SOEs) under the pretext of improving efficiency. This move threatens to place essential services under the control of profit-driven entities, leading to increased costs and reduced access for the working class. Privatization serves the interests of the capitalist class, allowing them to extract profits from services that should be publicly owned and operated for the common good.

Neglecting the Unemployed and Underemployed

South Africa's unemployment rate remains alarmingly high, yet the budget offers no comprehensive strategy to create jobs or support the unemployed. Instead, it relies on market-driven solutions that have consistently failed to generate employment. The lack of investment in job creation programs and vocational training reflects a disregard for the plight of the unemployed, further entrenching economic inequality.(effonline.org)

A Call for a Pro-Worker Economic Model

This budget exemplifies the failures of a neoliberal economic model that prioritizes the interests of capital over those of the working class. A Marxian analysis reveals the need for a radical restructuring of the economy, one that centers on public ownership of key industries, progressive taxation, and substantial investment in social services. Only through such measures can we address the systemic inequalities perpetuated by budgets like the one presented by Godongwana.

Conclusion

The 2025 budget is not a neutral financial document; it is a political statement that reflects the government's commitment to neoliberal policies at the expense of the working class. It is imperative for progressive forces to mobilize against such austerity measures and advocate for an economic system that serves the many, not the few.

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