The Justice and Peace Commission of the Southern African Catholic Bishops’ Conference (SACBC) has issued a statement expressing cautious support for certain aspects of South Africa’s 2025 national budget, while highlighting significant concerns regarding its implications for the country’s most vulnerable citizens.

Support for Social Spending and Grant Extensions

In the statement signed by Bishop Thulani Victor Mbuyisa a member of the Congregation of the Missionaries of Mariannhill (CMM), the Justice and Peace Commission acknowledges the government’s commitment to the “social wage,” noting that 61 cents of every rand of consolidated, non-interest expenditure is allocated toward social provisions, including essential services such as electricity, water, education, healthcare, affordable housing, and social grants.

Criticism Over SRD Grant Value and Inflation Adjustments

Although the commission commends the government for the extension of the COVID-19 Social Relief of Distress (SRD) grant until March 2026, and the allocation of R35.2 billion, the Commission expresses profound disappointment that the SRD grant’s value remains unchanged, lacking inflationary adjustments afforded to other social grants.

This omission is seen as an egregious oversight, particularly given its minimal fiscal impact of merely half a percent of total expenditure.

Concerns Over Regressive Tax Measures

The Commission warns that addressing the R75 billion VAT revenue shortfall through significant increases in fuel levies—16c/litre for petrol and 15c/litre for diesel—will impose additional economic strain on the poor and the struggling middle class. This measure, projected to generate R3.5 billion in 2025/26, is expected to disproportionately impact economically disadvantaged households already struggling with rising living costs.

Disappointment Over Zero-Rated Food Items

The government’s decision to abandon plans for expanding zero-rated food items is deemed regrettable by the Commission. It stresses that many South Africans face severe financial pressure, and the zero-rating of additional products would have provided meaningful relief.

Education and Nutrition Funding Concerns

While the National School Nutrition Programme received a marginally above-inflation increase of 5.3%, the Commission expresses concern that this allocation may be diminished by increasing food prices, potentially compromising the programme’s capacity to fulfil learners’ nutritional requirements.

Youth Unemployment and Employment Programmes

The Commission highlights the high levels of youth unemployment in the country as a potential catalyst for social unrest and political instability. It acknowledges the allocation of R8.8 billion for Public Employment Programmes and R22 billion from the Unemployment Insurance Fund for job creation initiatives as a welcome departure from previous detrimental reductions. However, it emphasizes that these allocations remain insufficient to substantially reduce unemployment affecting 12 million individuals.

In the Friday, May 30 statement the Commission underscores the imperative that the nation does not accept the current levels of unemployment as ethically acceptable, stating that the national restoration of the dignity of work is critical for the rebuilding of family as the foundation for moral renewal in the country.

Call for Ethical Budgeting and Social Justice

The SACBC Justice and Peace Commission’s statement serves as a moral appeal for a more equitable and compassionate fiscal policy. It urges the government to prioritize the needs of the most vulnerable and to implement measures that promote social justice and economic dignity.