Political parties criticise budget speech amid stagnant growth

“Out of touch, austerity-driven and insufficient to tackle the country’s persistent economic crises” was how some political parties have described Finance MinisterEnoch Godongwana’s budget tabled in parliament on Wednesday. In his speech, Godongwana projected GDP growth of 1.8% over the medium term, well below the 3% considered necessary to stabilise per capita income and slash unemployment. TheEconomic Freedom Fighters(EFF) slammed the 2026 budget review as serving the interests of global capital at the expense of the majority of South Africans.

“This is a fictional budget that relies on different creative accounting methods to achieve a meaningless ‘fiscal anchor,’” the party said. The Red Berets added that the attempt to introduce legislation that will “entrench austerity and the privatisation of public functions as a default approach must be rejected on democratic principles and in defence of the Constitution”. But while condemning the bulk of the fiscal framework, the EFF welcomed personal income tax relief and increases to social grants.

“We welcome the adjustment of personal income tax brackets in line with 3.4% inflation… this much-needed relief to highly indebted households, in particular Black workers,” the party said. “Social grants should be doubled as a means to bring meaningful relief to our people and to increase demand for goods in our economy.” Labour federation Cosatu dismissed the budget as lacklustre, warning that fiscal discipline has been prioritised over addressing unemployment and boosting economic growth. “We cannot afford to continue to normalise 1% economic growth nor 41.1% unemployment,” it said, welcoming funding increases for social services and infrastructure while criticising gaps in promised delivery.

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The uMkhonto weSizwe Party (MK) , the official opposition, said the budget reflected a departure from the liberation mandate, prioritising fiscal consolidation over land reform, education, local government support and industrialisation. “The consequence is a managed decline for the African majority,” the party said.

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