ATM says mini budget fails to deliver economic justice

The African Transformation Movement (ATM) has criticised the 2025 Medium Term Budget Policy Statement delivered by Finance Minister Enoch Godongwana on Wednesday, saying it fails to address the country’s deep economic and social challenges.

ATM national spokesperson Zama Ntshona said while the minister touched on key issues, his statement “falls flat in the fight for economic justice and transformation.” He said the budget lacks practical measures to create jobs, fight poverty, and drive inclusive growth.

Godongwana said the budget aims to stabilise government debt at 77.9 percent of GDP by 2025 and shift public spending from consumption to investment. He also said government’s priority remains to accelerate economic growth to create jobs and reduce poverty.

The minister announced that social grants, including the child support grant, old age pension, and disability grant, will continue to be paid, with inflation-linked adjustments expected in the next financial year. He said the lion’s share of consolidated non interest spending continues to fund government services and benefits that reduce the cost of living for citizens.

However, ATM said the minister’s commitment to growth lacks a clear plan for job creation. “Acknowledging unemployment is not enough. We expected specific programmes for youth and women, but the minister failed to present them,” Ntshona said.

He said the ATM also wanted more detail on skills development. “There is no clear strategy to close the skills gap or improve vocational training. Structural reforms in energy and logistics are important, but they will not create jobs without matching skills,” he said.

The party said the minister’s claims about shifting spending to investment were too vague. “We needed details on where the investment will go, which sectors will benefit, and how this will boost the economy. Without that, it is just talk,” said Ntshona.

The ATM expressed concern about the lack of progress on infrastructure, saying the minister’s reference to capital payments growing by 7.5 percent over the medium term did not explain which projects will be prioritised or how they will be funded. “Without concrete timelines and project lists, South Africans cannot hold government accountable,” Ntshona said.

On fiscal responsibility, ATM said it supports a balanced approach but warned that the government cannot focus only on debt reduction while people face a rising cost of living. “The minister said debt will stabilise, but he did not explain how. South Africans need clarity on how this will be achieved without cutting social programmes,” Ntshona said.

He added that many families are struggling with the cost of food, transport, and energy. “We expected measures to expand the list of zero rated VAT items and increase social support. The absence of such measures shows that government is out of touch with the reality of ordinary citizens,” Ntshona said.

The ATM also called for better cooperation within the government and between social partners to ensure stable leadership and effective policy delivery. “The minister spoke about the need for unity, but he offered no plan on how the coalition government will achieve it,” Ntshona said.

The party outlined several recommendations for turning the situation around. It called for concrete job creation plans focusing on youth and women, increased investment in skills training, and targeted public investment in sectors such as health, education, and the green economy.

ATM also said the government must present a clear infrastructure roadmap with specific projects and timelines. It urged the National Treasury to adopt a balanced fiscal strategy that maintains social spending while reducing debt responsibly.

“We also need immediate relief for low income households through expanded VAT relief and increased social grants,” Ntshona said. “People cannot continue to bear the brunt of poor economic management.”

The ATM said the mini budget missed an opportunity to introduce real transformation. “South Africa needs bold, decisive action. The time for vague commitments and recycled promises is over,” Ntshona said.

Other political parties also reacted to the mini budget. The Economic Freedom Fighters (EFF) accused the government of serving big business interests. The Democratic Alliance (DA) said the minister failed to control wasteful spending. The Good Party welcomed the continued funding of social grants, while the MK Party said the budget ignored the needs of the poor.

Ntshona said the ATM will continue to advocate for a people centred economy that prioritises job creation, equality, and social protection. “This budget falls short of that vision,” he said.