by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – SOUTH Africa’s 2026 national budget sets the stage for faster inclusive growth, job creation and poverty reduction, President Cyril Ramaphosa said, describing the fiscal framework presented by Finance Minister Enoch Godongwana as a turning point after years of economic strain.
“Every budgetary allocation is a developmental choice,” Ramaphosa said. “It determines whether there are teachers in classrooms, nurses and doctors in clinics, electricity and basic services in homes and businesses, and infrastructure to grow the economy.”
He said the budget builds on progress made in stabilising public finances, narrowing the deficit and restoring market confidence.
Improvements in debt levels and credit ratings signal the early stages of recovery, he added, arguing that a stable macroeconomic environment strengthens investor confidence while allowing government to expand growth and poverty-relief measures without undermining fiscal sustainability.
The social wage remains central, accounting for more than 60% of non-interest spending. Allocations this year will fund healthcare services for 84% of the population, social grants for 26.5 million beneficiaries, and free basic services for more than 11 million indigent households. About 13.6 million learners will be supported through basic education funding.
“This is a redistributive budget that reduces inequality and builds the capabilities of our people,” Ramaphosa said.
Infrastructure investment is a key pillar. Public spending on infrastructure will exceed R1 trillion over the next three years to upgrade roads and rail, expand energy capacity, and strengthen water and sanitation systems.
While the state will retain ownership of strategic assets, private capital will be mobilised through partnerships to accelerate delivery, particularly in electricity, rail and ports.
Through Operation Vulindlela, reforms are under way in energy, telecommunications, water and logistics to unlock growth.
The budget also confronts municipal financial distress, reallocating R19.2 billion to reform trading services in metropolitan municipalities, tied to strict performance targets.
Over three years, R86.9 billion is earmarked to support free basic services.
Additional support includes R4.1 billion for the Presidential Employment Stimulus and tax relief measures for small businesses.
“This budget balances fiscal discipline with our commitment to protect the vulnerable and drive inclusive growth,” Ramaphosa said.
– CAJ News