Pretoria: Deputy Finance Minister, Dr. David Masondo, has emphasized that the 2026 Budget is both redistributive and fiscally disciplined. The Deputy Minister was speaking at a post-Budget speech breakfast discussion organized by the National Treasury in collaboration with Brand South Africa and the Government Communication and Information System (GCIS).
According to South African Government News Agency, the National Treasury has based its economic growth strategy on four key pillars: maintaining macroeconomic stability, implementing structural reforms, investing in growth-enhancing infrastructure, and building state capacity. Masondo pointed out that these strategies aim to improve the lives of ordinary South Africans over the long term.
Masondo highlighted the importance of economic growth in generating tax revenue necessary for funding essential services like education and health. "All these things are significantly linked to the interests of the poor," he stated. "This is a redistributive budget in terms of expenditure as 60% of the budget goes to the poor. Those who say we are austere they must look at the facts."
This year's budget, Masondo explained, is unique due to the withdrawal of approximately R20 billion in tax increases, reflecting a careful management of public finances. He noted the impact of responsible fiscal policy on the cost of capital and investor perceptions of sovereign risk. "With the debt service costs going down, the debt service costs are going to reduce by R10 billion," he said, adding that this creates more fiscal space for spending on the needs of the poor and for entrepreneurial ventures, thereby making capital more accessible for job creation.