Johannesburg - The excessive focus in the budget on social spending is not sustainable, AfriSake said on Thursday.
"Hundreds of billions of rands are spent on social programmes, while investment in economic growth is lagging behind," said the Afrikaans business organisation's CEO Cornelius Jansen van Rensburg.
He was reacting to Finance Minister Pravin Gordhan's 2014/15 budget tabled in parliament on Thursday.
He said government would be spending more than 17% of the budget on social grants while less than five percent would be spent on initiatives aimed at supporting small businesses.
The planned spending on new infrastructure was important. However, he was not sure who would take care of the costs.
"The question remains as to who will have to bear the costs of all these initiatives in the long-term."
The SA Students' Congress was not moved by Gordhan's budget, said general secretary Luzuko Buku in a statement.
"In as much we welcome the intention to increase NSFAS [National Student Funding Assistance Scheme] funding, we believe this is not enough to address the plight of many poor students."
He said Sasco was worried because there were no signs of free education.
"We are also concerned that the R19.4bn that will be spent over the next three years on NSFAS does not indicate a move towards free education."
Sasco was disappointed there had been no pronouncement on their call to introduce an education tax.
The tax would focus on the rich and the money would be used to provide free education at all levels.
The SA Democratic Teachers' Union said the budget speech showed the president was committed to education.
"The allocation demonstrates his understanding of the role of both basic and higher education in the transformation of our society," the union said in a statement.
The union also welcomed business and entrepreneurial development, as well as the emphasis on job creation.
"We welcome the fact that even though the economy is not stable due to the global economic crisis, our economy has managed to gain some growth even if it is lower than expected."
The Independent Municipal and Allied Trade Union (Imatu) also welcomed the budget.
"We welcome the minister's commitment to the efficient allocation of expenditure, strengthening management structures, cutting waste and eliminating corruption," said general secretary Johan Koen.
He said it was encouraging to see that infrastructure development and job creation were being prioritised.
The union was pleased R40bn in infrastructure grants would be transferred to local government during the 2014/2015 period.
It was also happy R105bn would be used to improve water, sanitation, energy and environmental functions over the next three years.
He said the union supported the newly-developed spatial plans for cities, improved public transport and the upgrading of informal settlements.
Business Against Crime was impressed with the tax incentives small businesses would receive upon registration.
"Tax incentives for small businesses should ensure more voluntary compliance with the necessary tax legislation, and applicable laws, enabling the country to broaden its tax base," said CEO Simi Pillay van Graan.
She said BAC welcomed the increased tax on alcohol, hoping it would help reduce the number of alcohol-related crimes.
"Crime is an important factor which influences business growth and development in the country."