From Daily Maverick · Enoch Godongwana · · 4m
Godongwana lays out budget gains as debt falls
Finance Minister Enoch Godongwana reports South Africa's debt-to-GDP ratio has stabilised for the first time in nearly two decades, allowing temporary fuel relief and increased spending on infrastructure, crime-fighting and gender-based violence prevention.
In brief
Finance Minister Enoch Godongwana reports South Africa's debt-to-GDP ratio has stabilised for the first time in nearly two decades, allowing temporary fuel relief and increased spending on infrastructure, crime-fighting and gender-based violence prevention. Finance Minister Enoch Godongwana announced that South…
Godongwana tables budget documents
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Finance Minister Enoch Godongwana laid out the government's progress implementing Budget 2026 before Parliament on Wednesday, twenty-first October, tabling seven bills and policy documents.
Three milestones mark the year
Twenty twenty-six marks seventy years since the Women's March of ninth August nineteen fifty-six, fifty years since the Youth Uprising of sixteenth June nineteen seventy-six, and thirty years since the Constitution's adoption in nineteen ninety-six.
From fiscal crisis to stability
Years of State Capture, COVID-nineteen, low growth and rising debt brought South Africa to the brink of fiscal crisis. Government committed to moving from fiscal fragility towards stable, credible and sustainable public finances.
Debt-to-GDP ratio now falling
Debt as a percentage of GDP is now falling, creating a stronger foundation for investment, growth and job creation. All three major global credit rating agencies announced positive rating actions on South Africa.
Four pillars of growth strategy
Government's strategy for faster growth and healthier public finances rests on maintaining macroeconomic stability, implementing structural reforms, building state capability and supporting growth-enhancing infrastructure.
Global environment deteriorates
After Israel and the United States attacked Iran in February, the Strait of Hormuz closed, disrupting global oil supply.
Domestic growth forecast lowered
South Africa now forecasts real economic growth of one point two percent in twenty twenty-six, down from one point six percent projected in February.
Water sector reform underway
Government's National Water Action Plan addresses poorly maintained infrastructure, high water losses and weak municipal capacity. The priority is to restore operational performance, strengthen governance and technical capacity and reduce water losses.
Ifisa begins infrastructure work
The Infrastructure Finance and Implementation Support Agency began operations on first April twenty twenty-six. Ifisa is already supporting projects across all spheres of government with a potential investment value of more than two hundred seven…
Municipal PPP regulations submitted
Of sixty-eight projects currently in the PPP pipeline, thirty-one are municipal projects. The amended Municipal PPP Regulations have been submitted to Parliament for the required thirty-day scrutiny period, the final step before implementation.
Debt stabilises at seventy-eight percent
For the first time in nearly two decades, debt-to-GDP stabilised at seventy-eight point four percent of GDP in twenty twenty-five to twenty twenty-six.
Fuel levy relief announced
The fuel levy will be reduced by three rand per litre for diesel and one point five rand per litre for petrol from fourth November twenty twenty-six until first December twenty twenty-six.
Gender-based violence funding increased
To address gender-based violence and femicide, government allocates three point eight billion rand to hire more than thirty-five hundred social workers. An additional one hundred eighty-six million rand is allocated to forensic and investigative capacity.
Sexual offences courts expanded
Sexual offences courts will expand from fifty-five to one hundred one. Thuthuzela Care Centres providing support to rape victims will increase from seventy-two to eighty by twenty twenty-eight to twenty twenty-nine.
Local government receives ten percent
Over the medium term, local government will receive ten percent of available non-interest spending, a significant milestone.
Smart meter rollout expanded
Government is adding three point five billion rand over the medium-term expenditure framework for wider rollout of smart meters. Success in places like Sol Plaatje, Kannaland and Bela Bela Local Municipalities has improved revenue collection.
Suspended transfers force compliance
In June, Finance Minister Godongwana suspended the next equitable share transfer to sixty-nine municipalities that persistently failed to pay all creditors.
Stability must become growth
Godongwana said South Africa has stabilised its public finances despite global volatility. Over the next three years, the task is to turn this stability into faster growth and more jobs for all South Africans.
What it means
Finance Minister Enoch Godongwana announced that South Africa's debt-to-GDP ratio has stabilised at seventy eight point four percent, enabling the government to provide temporary fuel relief and increase spending on infrastructure and social priorities.
