South Africans cannot afford to be force-fed a status quo budget. Yet that is exactly what Finance Minister Enoch Godongwana delivered today when he tabled the 2025/26 National Budget before Parliament. It is a budget that clings to old ways, ignores the national mood, and fails to chart a bold course out of economic stagnation and mass unemployment.
Build One South Africa (BOSA) calls today’s budget a missed opportunity. In a moment when South Africa needed courage, we got complacency instead. In a country where millions are without work, where prices keep rising and growth is nowhere to be found, this budget does little to shift the trajectory and inspire hope, create jobs and drive growth.
The national mood is one of struggle and a desperate thirst for change. Many South Africans are barely getting by; others are not. Fuel prices remain inflated by excessive government taxes, and inflation is pushing up the cost of housing, school fees, electricity, and transport. Household debt is climbing, and jobs remain scarce.
This budget needed to reflect that reality. Instead, it reaffirms a business-as-usual approach. The budget can be chopped into three sections: The good, the bad and the ugly.
The Good: Short-term support maintained for the most vulnerable, through the continuation of social grants. While not a long-term solution, this does provide some relief to the millions who rely on it.
No VAT increase is a welcome relief to low-income households already stretched thin. No personal tax increase is also welcomed.
The Bad: Economic growth targets are frighteningly insufficient. The government’s 3% target is far below the 5% growth South Africa needs to create jobs and reduce poverty. The economy is shrinking at -0.3%, yet no clear plan was presented to reverse the trend.
Job creation remains an afterthought. Just as in last year’s budget, employment funding is negligible. Last year, less than 1% of the total budget went to job creation. This year is no better.
The infrastructure budget has been halved, which directly undermines the backbone of growth. You cannot speak of investment without roads, water, energy, and transport systems to support it.
Major cuts to social development spending, affecting vital support programmes for children, the elderly, and the disabled.
Cuts to frontline worker allocations, including police, teachers, nurses, and doctors, will severely impact the delivery of essential services. This is strongly rejected.
Fuel levies have increased, directly raising transport costs and feeding into inflation across every sector of the economy.
Provincial allocations have decreased, which will throttle service delivery at the local level where citizens interact most with government.
Spending is not linked to outcomes, particularly in underperforming departments. Without accountability, budget allocations are little more than political signals.
The Ugly: Debt continues to spiral out of control, now sitting at R5.21 trillion, or 74.7% of GDP. In 2008/09, it was just 23.6%. South Africa is now borrowing to service debt, not to invest in its future. This is economic mismanagement of the grandest order.
The size and scale of government remain untouched. A bloated Cabinet, excessive ministerial perks, VIP security details, and underperforming departments all continue unchallenged. Despite clear public opposition, no reforms have been announced to right-size the executive or cut waste. And the GNU benefits from this.
No structural reform was announced to restore confidence. Business and investor confidence are at all-time lows. Without regulatory, energy, and labour market reform, no amount of budget allocation will translate into real, sustainable growth.
In the end, this year’s budget was a chance to break with the past, to show courage, and to begin rebuilding South Africa’s economy. Instead, the GNU delivered a status quo budget that serves the few and forgets the many.
South Africans needed a turning point. What they got was a shrug.
Roger Solomons – BOSA Acting Spokesperson – 072 299 3551