CAPE TOWN – It’s D-Day for the 2026 budget.
Finance Minister Enoch Godongwana is set to deliver his Budget Speech on Wednesday at 2pm, outlining the government’s financial strategy for the upcoming year. This speech will detail how the government plans to allocate its resources, manage spending, and address the economic challenges facing South Africa.
Why It Matters
Investors, businesses, and households are closely monitoring the Budget Speech for insights into the country’s economic direction. Key areas of focus include the budget deficit, national debt, and potential changes to tax policies. The speech comes at a critical time as South Africa’s National Treasury seeks to raise additional revenue while managing limited resources across various government priorities.
Recent reports from PWC indicate that South Africa’s revenue has exceeded expectations, which may lead to adjustments in the original revenue targets for the 2025/26 fiscal year. Kyle Mandy, PWC Head of Tax, suggested that the anticipated $1.2 billion tax increases may not be implemented as previously planned, offering a glimmer of hope for taxpayers facing fiscal pressures.
What’s Next
As the Budget Speech approaches, all eyes will be on the Finance Minister’s announcements regarding personal taxes, which constitute a significant portion of the country’s tax revenue. With approximately 26 million registered taxpayers in South Africa, the implications of the budget will be felt widely, particularly among the million individuals earning over R750,000 annually. The outcomes of this speech will set the tone for South Africa’s economic policies in the coming year.
