Media Statement

The African National Congress welcomes the 2026 National Budget tabled by the Minister of Finance, Comrade Enoch Godongwana, as a practical and people-centred Budget that speaks directly to the daily realities of ordinary South Africans. In his address to Parliament, the Minister made it clear that South Africa has reached“an important turning point in the management of our public finances”.

For many citizens, these words are not about technical fiscal language. They mean something simple but powerful, that the country is stabilising, and government is regaining control of its finances so that more resources can be directed towards jobs, services and social protection.

For the first time in 17 years, government debt stabilises as a share of GDP and begins to decline over the medium term. The budget deficit narrows steadily, and the primary surplus expands 2026 Budget Speech. For ordinary families, this means lower borrowing costs for the country, more confidence from investors and a stronger foundation for growth. It means we are no longer drifting; we are rebuilding.

This Budget makes it clear that infrastructure remains at the centre of economic renewal. Over the medium term, public-sector infrastructure spending will exceed R1 trillion. That investment will go into roads, rail, water systems, electricity transmission and logistics networks. When roads are maintained, when trains run, when water flows reliably and electricity supply is secured, it is not just an economic statistic, it is a mother getting to work on time, a small business keeping its doors open, a farmer getting produce to market, and a young person finding opportunity in construction and engineering.

The recovery of PRASA commuter corridors, the strengthening of SANRAL’s road network, and major bulk water projects reflect a government that understands that service delivery is not abstract, it is about dignity. The performance-linked reform for metro water and electricity services, backed by R27.7 billion over the medium term, is a direct response to the frustrations of communities who experience water cuts and infrastructure collapse. The message is clear; revenue collected for services must be reinvested in those same services.

The ANC particularly welcomes the protection of the social wage. More than 60 per cent of non-interest spending continues to go to social protection, health and education. Social grants amounting to R292.8 billion will support millions of vulnerable South Africans. The old age grant increases to R2 400, and the child support grant rises to R580. For pensioners supporting extended families and for caregivers stretching every rand, these increases matter. Early Childhood Development receives additional funding to expand access to 300,000 more children.The National School Nutrition Programme continues to provide meals to over 9.9 million learners. In health, R26 billion is allocated to strengthen HIV and AIDS programmes. These are not luxuries. They are lifelines.

This Budget also recognises the pressures faced by workers and small businesses. The withdrawal of previously proposed tax increases, the full inflationary adjustment of personal income tax brackets, and the increase of the VAT registration threshold to R2.3 million demonstrate a government that has listened. Encouraging savings through higher tax-free investment and retirement deduction limits supports long-term financial security for families.

On peace and security, the increased allocation to police, defence and the Border Management Authority signals that communities plagued by organised crime, gangsterism, illegal mining and illegal immigration will not be left alone. Safety is a precondition for economic activity and social stability.

This Budget also directly confronts weaknesses in local government. With many municipalities in financial distress, the review of the fiscal framework and reforms to the Municipal Infrastructure Grant system reflect a decisive effort to protect communities from governance failures. Citizens must see the state working where they live, in clean streets, functioning water systems and reliable electricity.

As we move deeper into an election year, the ANC does not ask South Africans to judge us on rhetoric. We ask them to judge us on measurable progress: stabilised debt, sustained social protection, increased infrastructure investment, improved revenue performance and strengthened security.

The 2026 National Budget affirms supports our priority programmes as outlined the January 8th Statement; that South Africa’s challenges can be overcome through disciplined governance, strengthened state capacity and partnership in the public interest. It is a Budget that balances responsibility with compassion, stability with transformation, and reform with protection of the most vulnerable.

The African National Congress calls on all South Africans; the workers, entrepreneurs, students, pensioners and professionals; to stand together in building a more inclusive, sovereign and prosperous country. Our journey of renewal is underway, and together we will continue to move South Africa forward.

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