Consumers ‘overlooked’ as budget prioritises stability over relief

FINANCE Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS) delivered on Wednesday outlined government's plans to drive growth, stabilise debt and strengthen service delivery.

- ASHLEY LECHMAN

Yet for millions of South Africans struggling to make ends meet, the message was clear: relief is not coming any time soon.

The Minister said that South Africa’s main budget primary balance for 2025/26 was expected to outperform previous estimates, with revenues R19.3 billion higher than projected earlier in the year.

“There are clear signs that consistent fiscal discipline is paying off in improved investor confidence. This has been aided by sound monetary policy, which has reduced inflation and inflation expectations, enabling lower interest rates,” Godongwana said.

A key announcement was the formal adoption of a 3% inflation target, replacing the previous 3-6% range.

Godongwana said this move would lower borrowing costs and support investment over time, a change that aligns with the South African Reserve Bank’s long-term monetary policy strategy.

However, economists and consumer experts warned that this cautious approach might not do enough to ease the financial burden of South Africans already buckling under the cost-of-living crisis.

Debt Rescue CEO Neil Roets said the budget’s trade-offs left hardworking citizens in the lurch.

“The Minister has opted to prioritise debt containment, inflation reduction, and structural reform over immediate socioeconomic relief,” said Roets.

“Not adjusting tax brackets for inflation is not a viable solution, as that bracket creep breaks the backs of taxpayers. Government needs to consider more aggressive support strategies for consumers facing financial distress.”