JOHANNESBURG - After a pragmatic State of the Nation address last week, the National Budget Speech is next on the calendar.
Finance Minister Enoch Godongwana will address the nation on Wednesday.
Taxpayers are particularly concerned about potential changes to personal income tax.
Government spending remains a problem, especially with South Africa’s debt-to-GDP ratio nearing 78 percent -- a level closely watched by financial institutions and investors.
There is likely to be more tax revenue from the mining sector, given soaring prices for commodities like platinum and gold.
But will it be enough?
If not, government needs to find ways to raise revenue without slowing economic growth or placing further pressure on taxpayers.
Bracket creep remains one possible mechanism.
In last year’s budget, there were no adjustments to tax brackets.
This means more taxpayers gradually move into higher brackets, increasing state revenue even without a formal rate increase.
The Revenue Service has already stepped up compliance efforts, including using artificial intelligence, which has led to better collections.
As this is an election year, analysts believe a VAT increase, which was mooted and then withdrawn last year, is unlikely to happen.
The Budget Speech also has the task of restoring investor confidence and showing how fiscal policy will support economic growth.
All eyes are on the 2026-27 Budget to see what it means for South Africa’s future and how the Minister will keep the country’s finances on track.
- eNCA's Melissa Tighy reports.