CAPE TOWN - Finance Minister Enoch Godongwana has tabled his 2026 Budget Speech.
Although it was not without criticism, this year’s speech appeared to have drawn more praises than last year.
Among those welcoming the budget was Mark Burke of the Democratic Alliance, who described it as containing major wins.
Burke highlighted the relief measures such as no new tax increases and adjustments to personal income tax brackets.
Godongwana confirmed that government would not forge ahead with the R20 billion in tax increase which was increases provisionally included in the May 2025 Budget.
He also proposed additional tax measures to ease the financial burden on households and businesses.
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This included adjusting personal income tax brackets and rebates fully in line with inflation.
To further encourage saving, he proposed a tax-free annual investment limit be increased from R36 000 to R46 000 per year.
Also praising the speech was Keitumetse Sesana, a senior tax expert at the South African Institute of Taxation, who described it as a very comforting budget.
She went further, calling it pro-poor and supportive of middle-income earners.
However, Economic Freedom Fighters (EFF) leader, Julius Malema had a different view.
He said Godongwana tried to deliver a reasonable budget because he had the local government elections in mind.
According to Malema the reality is that without the economy growing, job creation and infrastructure development would be affected.
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Despite his criticism, Malema welcomed the allocation to the defence force following its deployment alongside police to fight illegal mining and gangsterism.
To support this and other efforts to intensify law and order, spending on peace and security increases from R268.2 billion in 2025/26 to R291.2 billion in 2028/29.
“The increase in security is a step in the right direction. But we need more money to increase capacity in defence and policing,” Malema added.
Meanwhile, Rise Mzansi leader Songezo Zibi described the fiscal plan as a “no-drama budget”.
He said, “Last year we had a different situation. The rand weakened and this year it has strengthened against the dollar this year.
“From that perspective it is continuity, predictability and stability are always good when you talk about a fiscal policy and this was a fiscal policy statement that was presented here," he said.