“Trade unions in South Africa play an important role in the economy. Unions have responded actively to the government's budgetary policies. Unions say their budget proposals will increase economic growth and support job creation. Union criticism of the budget has focused on the affordability of these proposals and their impacts on business growth. Will union budgetary alternatives support economic growth and economic inclusion? Introduction Trade unions played an important role in South Africa's transition from apartheid in 1994 and continue to play a very public role in the South African economy (STEENKAMP, 2005). COSATU (Congress of South African Trade Unions) is the main trade union in South Africa that actively commented on (criticized and praised) the national budget after its release (COSATU press releases, 2014). COSATU is affiliated with other unions in South Africa (NEHAWU, NUMSA, DENOSA) (COSATU, 2009) and collectively they have the bargaining power to influence government or business to give in to their claims. This paper will examine the key points of the national budget statement released by COSATU and critically examine whether these suggestions made by the union would have the desired impacts on the South African economy if the government decided to follow the lines of proposed actions. The first point to discuss is the fear that the South African economy is in austerity mode after a 2% annual increase in national GDP (Trading Economics, 2013) and that this increase is below the real terms allowing for population growth (COSATU press releases). , 2014). The second key point to discuss concerns government spending, particularly the...... middle of document......za/politics/2012/10/16/government-spent-r4.67-billion-on - food and entertainment reportSouth African Government News Agency. (September 11, 2013). “Economic development must benefit the majority – Ramaphosa”. Accessed April 16, 2014 from the South African Government News Agency: http://www.sanews.gov.za/south-africa/nomic-development-must-benefit-majority-%E2%80%93 -ramaphosaSTEENKAMP, PA (2005). South African trade unions: an overview from 1995 to 2005. Stellenbosch: DEPARTMENT OF ECONOMICS University of Stellenbosch. Laffer Center. (nd). The Laffer curve. Retrieved April 15, 2014 from the Laffer Center: http://www.laffercenter.com/the-laffer-center-2/the-laffer-curve/Trading Economics. (December 31, 2013). South Africa's annual GDP growth rate. Retrieved May 13, 2014 from Trading Economics: http://www.tradingenomics.com/south-africa/gdp-growth-annual