KZN Finance MEC Rodgers reacts to Godongwana budget

KwaZulu-Natal Finance MEC Francois Rodgers has cautiously welcomed the 2026 National Budget, describing its emphasis on fiscal discipline and debt stabilisation as a necessary step towards restoring confidence in the country’s public finances. In his budget tabled before Parliament on Wednesday, Godongwana in amongst others projected that public debt will stabilise at 78.9% of GDP in 2025/26 before gradually declining over the medium term while the national budget deficit will narrow to 4.5% of GDP, with further reductions anticipated in subsequent years. Rodgers said the projections signalled a shift towards responsible fiscal management after years of mounting debt and rising borrowing costs.

“This is an important step towards restoring South Africa’s financial credibility,” Rodgers said, adding that stabilising debt levels would allow the government to redirect resources towards pressing social needs. “It is encouraging that the country is taking debt seriously. Every rand saved on interest is a rand that can be redirected to critical service delivery.

“Stabilising public finances is essential for the protection of future generations and to create room for growth.” Rodgers also welcomed targeted tax relief measures aimed at supporting small businesses. These include an increase in the VAT registration threshold from R1 million to R2.3 million, as well as capital gains tax relief that raises the exemption on the sale of a small business from R1.8 million to R2.7 million. The adjustments, Rodgers said, could ease compliance costs and encourage entrepreneurship at a time when economic growth remains fragile. However, Rodgers raised concerns that the Budget does little to address mounting financial pressure on provincial frontline departments.