South Africa

Finance Minister Enoch Godongwana: Full 2026 Budget Speech.

Government has announced strengthened measures to improve the operations and financial management of local and provincial government, marking a shift to structural intervention from oversight.

The country’s financial future was on the agenda on Wednesday when Finance Minister Enoch Godongwana delivered the 2026 Budget Speech in Parliament.

Government will allocate some R410 million over the medium term to offset the funding gap in research left after the withdrawal of funding by the United States.

All social grants, barring the COVID-19 Social Relief of Distress (SRD) grant, will increase in the next financial year.

National Treasury’s Targeted and Responsible Savings (TARS) programme has identified some R12 billion in wasteful and ineffective programs within government.

Finance Minister Enoch Godongwana has reiterated government’s commitment to making infrastructure investment the bedrock of the country’s growing economy.

Government has allocated R848.2 billion over the medium term to combat crime and ensure territorial integrity.

South Africa’s economic growth outlook is “steadily improving”, with growth projected to reach some 1.6% in 2026, following growth of 1.4% in 2025.

Government has officially withdrawn the R20 billion tax increase for Value Added Tax (VAT) that was previously penciled in for the 2026 Budget, to provide inflationary relief to taxpayers.