Media Statements

The ANC welcomes the Medium-Term Budget Policy Statement as tabled by the Minister of Finance, Cde Enoch Godongwana today. The 2024 ANC Election Manifesto committed to put South Africans to work, to support the growth of industries, to tackle the high cost of living, and to invest in people. The Medium Term Budget Policy Statement (MTBPS) provides a macroeconomic framework within which to advance these commitments to social and economic transformation.

The ANC welcomes the fact that through the MTBPS, government maintains priority spending on public infrastructure and inclusive growth, and to eliminate corruption and wasteful expenditure. Infrastructure spending on water, roads, rail, ports and electricity is key to lifting the rate of growth and job creation.

This policy emphasis aligns with government’s broader growth strategies and with the ANC’s 10 priority interventions for the economy announced after the ANC’s NEC meeting in October this year, which aims amongst others to fast-track large-scale investment in the country’s electricity transmission grid, strengthen the capacity of the state to manage major projects, promote township and rural economies and use development finance institutions to support the growth of SMME’s.

The fact that tax revenue receipts have been higher than expected in the past year also contributes to the fiscal capacity required to fund infrastructure spending as well as spending on public services and social grants. The ANC salutes all South Africans who continue to pay their taxes and contribute to our country’s public finances. We call on SARS to strengthen its programmes which aim to enforce wider tax compliance.

Through sustainable fiscal planning, the ANC is confident that government will be in a position to maintain the real value of social grant transfers and will be able to continue with public employment programmes, as well as with the provision of subsidised access to basic services to assist millions of households in need.

This Budget demonstrates that under the leadership of the ANC, fiscal discipline and social justice can coexist. The projected narrowing of the budget deficit from 4.5% of GDP in 2024/25 to 3.2% by 2027/28, and the stabilisation of government debt below 74% of GDP, show that prudent financial managementremains a cornerstone of our developmental agenda. The R40 billion revenue overrun recorded in the first quarter of 2025/26 is testament to the improved efficiency of SARS and government’s fight against illicit trade and tax evasion.

The ANC particularly welcomes the allocation of R943 billion over the next three years for infrastructure investment, focusing on energy, roads, water, and transport. These investments will not only stimulate industrialisation and job creation, but also improve service delivery to communities. The Infrastructure Investment Plan 2.0 and Infrastructure Fund fast-tracking mechanisms will ensure that these projects are implemented on time and within budget, while the 6 000 MW renewable energy expansion strengthens energy security and supports a just transition.

The continuation of the Presidential Employment Stimulus (R36 billion) and the target of creating 2 million job opportunities by 2026 represent tangible action in addressing unemployment. The expansion of the National Skills Fund for youth placements in digital and green sectors aligns with the ANC’s vision for a modern, knowledge-driven economy.

The ANC welcomes the inflation-linked increases to social grants and the additional R58 billion for social protection. These interventions cushion the most vulnerable and affirm government’s commitment to restoring dignity to all South Africans. The forthcoming Comprehensive Social Security Reform Paper marks a crucial step toward universal social protection.

Significant allocations to education (R310 billion) and health (R12 billion for NHI transition) demonstrate that the ANC-led government continues to prioritise people’s development. The R49 billion for NSFAS and the recruitment of 15 000 nurses and doctors by 2027 will ensure improved access to quality education and healthcare.

Support to municipalities through the R17.5 billion Municipal Infrastructure Grant and the debt relief framework will strengthen local service delivery. The ANC also notes the allocation for 10 000 new SAPS recruits, modernisation of the defence force, and digitalisation of courts, all of which enhance state capacity and citizen safety.

The R18 billion allocation for land reform and rural infrastructure, alongside the rollout of agro-processing industrial parks, supports inclusive rural growth. The R2.5 billion Climate Adaptation Fund and the Green Industrial Strategy leveraging R100 billion in blended finance reaffirm South Africa’s leadership in building a sustainable, climate-resilient economy.

2The principle is to assist in containing the cost of living, which is particularly important for middle class, working class and poor households. In this context, low inflation protects the buying power of middle-and working-class families, whose wages are eroded by steep rises in prices.

The ANC holds that the credibility of this monetary policy strategy will be established when low inflation results in lower borrowing costs for households, firms and government to create a conducive environment for higher levels of investment by both the public and private sectors. This is vital for growth-inducing industrial policy. This means that the spread between the lending rate and the low inflation rate must visibly come down.

For South Africa to break out of the trap of low growth, rising indebtedness and failing infrastructure, a number of complementary policy interventions are required. Local government service delivery and finances must be improved. Capabilities for effective spending on public infrastructure projects need to be strengthened at all levels of government. Spending must be guided by the country’s strategic priorities.

There must be rational interventions to eliminate wastage of public resources where such is identified. Corruption must be exposed and those who have been stealing from the public must face the consequences.

We welcome the launch of the Procurement Payments Dashboard on the eTender portal, a decisive and practical step towards transparency, accountability, and the fight against corruption. This initiative allows South Africans to view payments made to suppliers by national and provincial departments, giving citizens direct oversight into how public resources are spent. The ANC believes this innovation reflects government’s unwavering resolve to strengthen ethical governance and restore the integrity of the public sector. It is a tangible expression of the ANC’s commitment to clean governance and people-centred service delivery.

The ANC also celebrates South Africa’s removal from the Financial Action Task Force (FATF) grey list, a significant milestone that reaffirms the country’s credibility in the global financial system. This achievement is the outcome of robust collaboration across government, law enforcement, and the financial sector to combat money-laundering and terrorism financing. It demonstrates that South Africa is serious about reform, compliance, and integrity in financial management. The ANC applauds all sectors

that contributed to this success, which strengthens investor confidence and positions our nation as a trustworthy, transparent, and responsible member of the international community.

The ANC calls on government to strengthen policies to promote economic inclusion. Safety and security, improved service delivery, access to quality public health and education services, black economic empowerment, improved urban planning, effective land redistribution and land reform, policies to support small business, and industrial policies to boost the global competitiveness of South Africa’s 3mining, agriculture, manufacturing and services sectors, are all required to transform the exclusionary structure of the South African economy.

Through the MTBPS the Minister of Finance has provided a positive roadmap for the economy, but much still needs to be done. The ANC calls on government to show determination and discipline as it undertakes the interventions required to lift the economy to a higher trajectory of inclusive growth.

Ongoing consultation and consensus building with GNU parties, as well as with social partners in communities, trade unions and businesses will assist in overcoming resistance and blockages to the country’s programme of economic growth and transformation. For the ANC, it is important that such ongoing consultations should result in the acceleration of inclusive growth and rising living standards for ordinary South Africans. Now is the time to move forward to achieve a better life for all, it is not the time for deadlock and delay.

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