‘It does not address SA’s social crises’: Reactions to Godongwana’s budget speech

Minister of Finance Enoch Godongwana accompanied by the Governor of the South African Reserve Bank, Lesetja Kganyago, and the Commissioner of the South African Revenue Services, Edward Kieswetter, walk to Parliament for the tabling of the Budget 2026. Picture: X/ParliamentofRSA Even the critics of the government’s handling of the economy are positive about the country’s economic performance, which they believe is turning the corner, but some argue that Finance Minister Enoch Godongwana’s macroeconomic indicators mean very little for the majority of the population. The usually critical Efficient Group’s chief economist Dawie Roodt expressed positive sentiment about the national budget on Wednesday.

Roodt praised the minister for the improved state revenue performance, which has enabled thereduction of several taxes. Roodt said the state revenue performance is a good sign taxpayers will reap good dividends in future. “The state revenue is performing better than expected.

Now, there is tax relief for the normal taxpayer in South Africa,” Roodt said. But on the expenditure side, there were several increases which the economist believes were inevitable. “Unfortunately, this is an expectation in terms of economic growth, which is just not good enough.

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It seems to me that we have turned the corner regarding the stability of the fiscal accounts. But much more needs to happen,” Roodt said. The economist was referring to Godongwana’s optimism about the tax environment while presenting the National Budget in Parliament on Wednesday.

The minister said over the past three years, the state’s tax system has demonstrated resilience despite slow economic growth. For 2025/26, the gross tax revenue is revised up by R21.3 billion compared to the estimate in the 2025 Budget and higher-than-expected net VAT, corporate income tax and dividends tax collections improved the in-year outlook. “As a result, government has decided to withdraw the R20 billion in tax increases provisionally included in the May 2025 Budget.

The improving fiscal position allows us enough room to withdraw the proposed tax increases, without putting fiscal sustainability or economic activity at risk, Godongwana said. On the domestic front, growth outlook is steadily improving with projected real economic growth of 1.6% in 2026, up from the 1.4% estimated for 2025. “This improvement reflects the continued strengthening of economic performance from the second half of 2025.

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