Finance Minister Enoch Godongwana is set to deliver the 2026 Budget Speech amid improved revenue collections and mounting pressure for tax relief.
Image: Armand Hough / Independent Newspapers
PERMANENT and adequate universal “social protection floors” have been identified as the key ingredients for the country to achieve transformative growth, employment, and prosperity.
This is according to the Economic Institute for Economic Justice ahead of Finance Minister Enoch Godongwana’s Budget speech Wednesday afternoon, the second under the Government of National Unity (GNU).
Godongwana's last update, the Medium-Term Budget Policy Statement, highlighted a surplus of R68.5 billion, with revenue exceeding the budgeted estimate by R19.3 billion and reductions in debt service costs. Godongwana had indicated that he will make a final decision on additional tax increases after VAT increase was rejected.
The Economic Institute for Economic Justice said the minister must choose a different, transformative growth path.
It also said the Budget should rebuild the state capacity, ensure proactive and coordinated macro-economic capacity and strengthen social protection, among other things.
“We cannot have transformative growth, employment, and prosperity while 17.8 million people don’t have enough to eat. We need a permanent, adequate, universal social protection floor.”
MK Party MP Des van Rooyen expressed skepticism, saying: “We are not optimistic because the basics of developing our country are not in place. The fundamentals have not been changed from what they were in the last Budget to what they are today…it will be naive for anyone to expect that there will be major changes coming out of the Budget Speech.”
IFP Chief Whip Nhlanhla Hadebe called for decisive actions that align with long-term developmental goals.
Hadebe said they expected the 2026 Budget to deepen, not dilute, the progress made in frontline services such as education, healthcare, and social grants.
DA's Finance shadow minister, Mark Burke stressed the need for tax bracket and rebate adjustments to counteract inflation without resorting to increases.
“We can’t afford another year of stealth taxes and we definitely can’t afford explicit increases,” said Burke, urging a shift toward tax reductions rather than hikes.
Build One South Africa spokesperson, Roger Solomons, demanded a strategic plan that addresses economic challenges while prioritising job creation and social justice.
Cape Times