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Johannesburg - Nehawu expressed disappointment on Wednesday at the stance taken by Finance Minister Pravin Gordhan in his medium-term budget.
"It is disappointing to see that the Treasury's counter-fiscal policy stance only amounts to an average annual real increase of 2.2% in non-interest public spending over the next three years," the National Education, Health and Allied Workers' Union (Nehawu) said in a statement.
"This tame stance is unlikely to stimulate growth and thus crowding-in further investments over the medium term period."
The union said it was concerned that over R7bn had already been forfeited by the fiscus due to tax cuts announced in February. This measure had not had any clear impact on the growth rate.
"This is why we are concerned about further tax concessions that will benefit businesses as contained in terms of the Employment Tax Incentive Bill, especially in the special economic zones," Nehawu said.
"This may become a perverse incentive, encouraging the relocation of businesses to these zones at the expense of other localities."
Nehawu welcomed the projections in the consolidated government expenditure over the medium term period, that Employment and Social Security would be the fastest growing expenditure item on the budget at 13.8%.
"However, we are concerned that defence and state security are set to grow at a faster rate than economic and general public services.
"These are critical items to ensure economic recovery, and they are more important in enhancing public safety and social cohesion," the union said.
Nehawu welcomed the measures announced to reduce the wasteful expenditure and abuse of public resources.
However, it called on the government to also focus on the wasteage incurred by the state, in public-private partnerships and tenders.
