The coming test of a communist government

The SACP’s criticism of Finance Minister Enoch Godongwana’s medium term budget offers voters a preview of how the party would spend public money if it gained municipal power on Wednesday.

The party first contested elections under its own banner in 2017, when it challenged the ANC in Metsimaholo municipality amid disputes over local ANC factions and corruption.

But Wednesday marks a much bigger political gamble. The communists are fielding more than 4 000 ward and proportional representation candidates nationwide, after a deepening split with the ANC over its decision to govern alongside the DA.

The party wants voters to judge its economic programme independently of the ANC.

Its response to last week’s Medium-Term Budget Policy Statement reveals a party that wants government to spend more on employment, retain control of essential services and reduce opportunities for private companies to profit from public infrastructure.

How would a communist-led municipality distribute its budget differently from councils that follow Treasury’s spending priorities? The answer lies in the party’s October 23 budget statement and its municipal election manifesto.

Jobs before budget surpluses

Godongwana celebrates debt stabilisation and primary budget surpluses. The SACP measures economic progress through employment, industrial development and improvements in people’s living conditions.

Treasury plans to restrain annual expenditure growth to 3.6%, while the communists argue that this approach sacrifices opportunities to create jobs.

The party wants government to expand public employment programmes and invest in housing, healthcare, education and transport. Instead of relying on contractors, SACP-led councils would seek to employ municipal workers to repair infrastructure, maintain public facilities and deliver essential services. They would also support apprenticeships, cooperatives and municipal enterprises. More expenditure could go towards municipal employees and locally organised production, while less would go towards outsourced services.

But the approach would require sufficient revenue to pay workers, maintain equipment and sustain employment.

Public services before private profits

The second difference concerns who should deliver municipal services. Godongwana supports reforms that invite private investment into electricity, transport and other infrastructure.

The SACP argues that these allow businesses to collect profits from essential services while government remains responsible for public infrastructure.

It wants public ownership and democratic control of electricity, water and transport. The party promises to rebuild municipal capacity and bring outsourced services back into public provision wherever possible.

Rather than appointing private companies, a communist-led municipality would first determine whether municipal departments could perform those functions themselves.

The party says this would strengthen public accountability and keep more resources in public services.

However, councils would need skilled workers, functioning equipment and effective management.

More money for municipalities

The SACP says local government receives only 10% of non-interest expenditure, leaving councils without enough money to deliver services or create employment.

The party also criticises Treasury’s practice of withholding funds from financially distressed municipalities when they fail to meet certain conditions.

An SACP-led council could demand greater financial support from national government but it could not independently rewrite Treasury’s allocation formula. Municipal budgets would therefore still face financial limits.

Cheaper services and public land

The communists also want councils to prioritise affordable water and electricity, protect basic services and stop punitive disconnections. They propose using public land for housing, food production and cooperatives rather than selling it to private developers.

The party also proposes ward assemblies where residents can help determine spending priorities and monitor municipal expenditure.

Its manifesto promises councillors who report regularly to communities and face recall if they betray public expectations.

From communist promises to governing power

The SACP’s proposals reveal a different approach to municipal budgeting but they do not yet amount to fully costed municipal budgets.

Councils must balance revenue and expenditure, pay creditors and comply with national financial legislation.

The party would also need to explain how it would finance additional workers, affordable services and expanded public enterprises without weakening municipal finances.

That is where its criticism of Godongwana becomes an electoral test.

On November 4, the SACP will ask voters to give it the power to put its economic ideas into practice. Its budget response explains what it wants to change. The election will determine where it gets an opportunity to try.

• Stone is political editor