Godongwana to Table 2026 Budget Focused on Growth and Protection

Finance Minister Enoch Godongwana will on Wednesday table South Africa's 2026 National Budget in the National Assembly, setting out government's financial, economic and social commitments for the year ahead amid constrained public finances and rising demands for inclusive growth.

The 2026 Budget is expected to chart a careful course between accelerating economic expansion and shielding vulnerable households from persistent cost-of-living pressures, unemployment and service delivery challenges.

Balancing Growth and Fiscal Discipline

Against a backdrop of limited fiscal space, moderate economic recovery and ongoing global uncertainty, the Budget aims to strike a balance between supporting economic growth and maintaining fiscal sustainability.

South Africa's economy is projected to show gradual improvement after years of sluggish performance, with structural reforms in energy, logistics and infrastructure beginning to take effect. However, debt-service costs remain one of the fastest-growing expenditure items, placing pressure on available resources for social and capital spending.

Minister Godongwana is expected to outline:

• Measures to stimulate investment and job creation

• Continued reforms in the energy and logistics sectors

• Support for small businesses and industrial development

• Strategies to stabilise public debt and contain expenditure

Funding Government Priorities

The Budget Speech will detail how national revenue will be allocated to fund the priorities announced by President Cyril Ramaphosa during the State of the Nation Address (SONA). These priorities typically include:

• Infrastructure-led growth and public-private partnerships

• Energy security and grid expansion

• Strengthening frontline services such as health, education and policing

• Expanding social protection for low-income households

• Youth employment and skills development initiatives

The Budget serves as the financial blueprint for translating these policy commitments into funded programmes.

Supporting the Vulnerable

With millions of South Africans dependent on social grants and income support measures, the 2026 Budget is expected to maintain a strong focus on social spending. Social protection remains one of the largest components of government expenditure, including old-age pensions, child support grants and disability grants.

Government faces the dual challenge of protecting vulnerable communities while ensuring long-term fiscal sustainability. Any adjustments to grant allocations, public sector wages or tax measures will be closely watched by markets, civil society and labour groups.

Legislative Process: Key Bills Tabled

During the same plenary sitting, Minister Godongwana will introduce the Appropriation Bill and table the 2026 Division of Revenue Bill.

• The Appropriation Bill sets out how funds will be allocated to national departments.

• The Division of Revenue Bill determines how revenue will be shared between national, provincial and local government spheres.

These bills will undergo parliamentary scrutiny in the months ahead, including committee hearings and public participation processes, before final adoption.

Governed by the Public Finance Management Act

The Budget is produced and presented in accordance with the Public Finance Management Act (PFMA), which regulates transparency, accountability and fiscal management across government.

The PFMA requires that the Budget clearly outline projected revenue, expenditure allocations and borrowing requirements, ensuring Parliament can exercise oversight over public finances.

A Defining Moment for Economic Momentum

With government indicating that the economy is "on the cusp" of stronger growth, the 2026 Budget will be closely analysed for signals on tax policy, borrowing levels, infrastructure investment and reform implementation.

Markets, investors and citizens alike will be watching whether the Budget delivers a credible path to faster growth, job creation and improved service delivery — while maintaining fiscal stability in an era of constrained resources.