Pretoria: MEC for Finance Francois Rodgers has described the 2026 National Budget as a critical step towards restoring South Africa's financial credibility. Presenting the 2026 Budget Speech in Parliament on Wednesday, Finance Minister Enoch Godongwana announced that public debt is projected to stabilise at 78.9% of Gross Domestic Product (GDP) in 2025/26 before declining over the medium-term.
According to South African Government News Agency, the budget deficit is expected to narrow to 4.5% of GDP, with further reductions projected to decline to 2.9% in 2028/29. Rodgers welcomed the budget's strong emphasis on fiscal discipline and debt stabilisation. He highlighted the importance of taking debt seriously, noting that every rand saved on interest could be redirected to critical service delivery.
Stabilising public finances, Rodgers stated, is essential for the protection of future generations and creating an environment conducive to economic growth. The MEC also welcomed targeted tax relief measures aimed at supporting small businesses, including an increase in the VAT registration threshold from R1 million to R2.3 million and capital gains tax relief that raises the Capital Gains Tax (CGT) exemption on the sale of a small business from R1.8 million to R2.7 million.
However, Rodgers expressed concern that the budget offers limited relief for provincial frontline departments, such as Health, Education, and Social Development, which have faced sustained pressure due to reductions in the equitable share over the years. He pointed out that in KZN, equitable cuts from National Treasury amount close to R80 billion over the past nine years amid increases in expenditure items.
Rodgers also urged Godongwana to urgently pursue the taxation of online gambling, arguing that it presents a viable opportunity to generate additional revenue for improved service delivery.