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budget deficitlatest news & developments
Set for presentation: Finance Minister Enoch Godongwana arriving at Parliament to deliver the budget. He is
flanked by South African Reserve Bank governor Lesetja Kganyago, left, and South African Revenue Service
commissioner Edward Kieswetter. Photo: GCIS

Budget: debt peaks but growth lags

The projected economic growth trajectory remains insufficient to address structural unemployment

Finance Minister Enoch Godongwana. Photo: Supplied by the  Government Communication and Information System (GCIS)

Economists split on whether 2026 budget marks a real turning point

The growth outlook is insufficient to alter unemployment dynamics, some argued

National treasury officials said the costing for the deployment of soldiers in crime-affected areas — as announced by President Cyril Ramaphosa,  his Sona, had not yet been done. (GCIS)

South Africa to earmark R1.58 trillion towards social services

National treasury officials said the costing for the deployment of soldiers in crime-affected areas — as announced by President Cyril Ramaphosa, his Sona, had not yet been done

Finance Minister Enoch Godongwana delivers the 2026 Budget Speech

South Africa’s economy to grow by 1.6% in 2026 from 1.4% last year

Over the next three years, growth is projected to average 1.8% and reach 2% by 2028

Democratic Alliance leader John Steenhuisen. (Delwyn

Coalition takes wrangling over tax in the budget to parliament

Budget approval hangs in the balance and resistance to it is set to play out in the legislature’s finance committees

Staying put: Finance Minister Enoch Godongwana is under pressure from some political parties to resign over the VAT drama and the national budget. (Dwayne Senior/Bloomberg via Getty Images)

Budget 2.0: Political parties divided over VAT hike, albeit lower than initial proposal

The Democratic Alliance said the budget would struggle to pass in parliament, given the ANC’s lack of a majority

Agriculture Minister John Steenhuisen. (Delwyn Verasamy/M&G)

Steenhuisen reiterates DA opposition to tax hikes

His party would have yielded if any increases were guaranteed to be temporary and tied to an overhaul of state spending patterns

Finance Minister Enoch Godongwana. Photographer: Dwayne Senior/Bloomberg via Getty Images

Tapping into gold and foreign reserve to pay debt servicing costs is risky for South Africa

Economists say the government can expect to incur inflationary and exchange rate costs from the move

Investor confidence is low as citizens and domestic private companies stash their cash abroad to protect it from the volatility of the weakened rand. (Getty)

Tax hikes will not be dramatic

A senior treasury official told MPs the intention was not to close the widening deficit through higher personal income taxes

Piggy bank

Mid-term budget: Tax hikes on the horizon

Increases will be announced in the new year to raise an additional R15 billion in revenue

Finance Minister Enoch Godongwana. (David Harrison/M&G)

Controversial government spending cuts ‘paid off’

Fiscal consolidation is drawing to a close as the public purse was boosted by commodities, but the treasury will probably continue exercising restraint

Finance Minister Enoch Godongwana. (David Harrison/M&G)

Treasury lauds success of fiscal consolidation efforts

The state is set to achieve a primary budget surplus a year earlier than expected

Holding the line: Finance Minister Enoch Godongwana (centre), who has been in the job for just 100 days, arrives for his mid-term budget presentation to parliament. He said  growth, which relied on economic reforms, was imperative. (Dwayne Senior/Bloomberg/Getty Images)

Godongwana holds off on basic income grant decision, closes taps to state enterprises

Godongwana warns that the outer limits of the budget are non-negotiable as a debt cliff loomed

Finance Minister Enoch Godongwana. File Photo

Democratic Alliance welcomes Godongwana’s ‘tough love’ for state-owned enterprises

The opposition party referred to the government’s economic policy as ‘hopelessly inadequate’ and an obstacle in the path towards stable public finances

The MTBPS stresses that there are already 18.3 million citizens who receive one or another form of welfare grant. (Delwyn Verasamy/M&G)

Basic income grant not on treasury’s watchlist — yet

Treasury officials will model the effect of the grant on the fiscus if the need arises

Reeling: Volunteers and workers clean up the looted Bara Mall in Soweto. The destruction and theft in the country is a more than R50-million blow to the already struggling economy.  (Lucas Sola/AFP)

Violence sparks new calls for basic income grant

Analysts agree that economic relief for the poor is needed but are split on whether a grant should be permanent and whether it is affordable

Striking for their rights: Cosatu members protesting in Johannesburg. The trade union federation has previously threatened to dump its alliance with the ANC if planned cuts to the public-sector wage bill go ahead. (Delwyn Verasamy/M&G)

Mboweni plans to freeze public sector wage increases for the next three years

The mid-term budget policy statement delivered by the finance minister proposes cutting all non-interest spending by R300-billion.

(Siphiwe Sibeko/Reuters)

SA’s current account deficit widens

The deficit came after seven consecutive quarterly surpluses.

Imported goods are subject to customs duties and a 15% VAT rate based on their value, which must be paid to Sars. (Oupa Nkosi)

Zuma budget hole leaves SA with tough decisions on tax

With growth in SA lagging that of peers after a second recession in less than a decade, tax collections have dwindled

(Graphic: John McCann)

Gigaba gives markets the jitters

His mini-budget speech promised a lush harvest, but analysts say a famine of ideas and a drought of solid assurances failed to convince investors