South Africans will not accept another budget that preserves the status quo. As Finance Minister Enoch Godongwana tables the 2026 National Budget tomorrow, citizens demand a plan that tackles economic challenges head-on, invests in skills and jobs, and lays the foundation for real and measurable change in the medium term.
It would be irresponsible of the Minister – and the government – to ignore or misread the national mood. It is one of struggle and a great appetite for change. Some South Africans are barely getting by, others are not. The cost of living is soaring. Whether it be food, transport, electricity, school fees, or bond repayments and rent, citizens are in a tight bind.
The basic food basket now costs R5,401.44, while a third of petrol prices are made up of government taxes and levies. Household debt is rising, inflation is driving up bond and rental costs, and economic growth remains stagnant.
The choices made in this budget must reflect the urgent realities of citizens. Fiscal and spending priorities must not serve political convenience but rather the fundamental task of economic growth, job creation, and social justice.
BOSA today presents its expectations for tomorrow’s budget, calling on Minister Godongwana to avoid a status-quo framework and instead prioritise public spending that builds a firm foundation for the future.
We are asking the Finance Minister to fund for three foundational areas.
- Fund for growth and jobs.
- Fund for quality education.
- Fund for safety and security
Economic growth that reaches 5% per year is crucial. The President’s target of 3% is simply not enough. South Africa’s economy is stumbling along, and investor confidence is low. If we do not restore confidence, support businesses, and create real jobs, then no budget will stave off economic decline.
We are calling for a R100 billion Jobs and Justice Fund and the declaration of all townships as Special Economic Zones (SEZs) to unlock investment, grow small businesses, and provide real economic opportunities where people live.
Infrastructure investment stands at less than 15% of GDP, far below the 30% target set by the National Development Plan. Without strategic investment in roads, transport networks, energy, and water systems, we are choking economic expansion before it even begins.
South Africans are already overburdened by the high cost of living, rising fuel prices, and stagnant wages. Introducing additional taxes – whether VAT, income tax hikes or fuel levies – would place an insupportable strain on households and small businesses alike. We are calling on the Minister to adjust income tax brackets for inflation, so as to not furtively raise income tax through bracket creep.
The forecast is stygian on the public debt front. Debt is spiralling at R6.09 trillion – 77.4% of GDP -and rising. The debt-to-GDP ratio has skyrocketed from 23.6% in 2008/09 to a projected 77.4% in 2025/26. This is a ticking time bomb that, if ignored, will condemn future generations to economic servitude. Government must learn to live within its means, not borrow recklessly at the expense of the people.
Cost-cutting measures in the size and scale of government are long overdue. This includes a drastic reduction in the size of the bloated Cabinet, the capping of ministerial perks, and a significant cut to wasteful VIP expenditure. We also propose merging or eliminating underperforming departments that have failed to deliver value to the public. South Africa has about 700 state-owned enterprises
Social spending already consumes 60% of the budget. While short-term relief is necessary, long-term reliance is a trap. The best poverty reduction strategy is jobs, not endless grants. The social relief of distress (SRD) grant, so called “Covid grant”, must be responsibly phased out.
On frontline services, BOSA remains opposed to any budget cuts. In safety and security, we are calling for an additional 120 000 police officers to strengthen ground capacity and ensure vital resources like vehicles, firearms, and forensic tools are well-managed and available where needed.
At the same time, government must prioritise employing the thousands of qualified but unemployed teachers and doctors. It is unacceptable that young South Africans dedicate years to training, only to find no available posts, while hospitals remain understaffed and classrooms overcrowded.
Tomorrow’s budget is a defining moment. It is an opportunity to move away from the mismanagement of the past and chart a new course toward fiscal responsibility, economic growth, and a government that prioritizes the needs of its people.
Media Enquiries:
Roger Solomons
BOSA Spokesperson
072 299 3551