Godongwana reports strong revenue collection amid fiscal challenges

FINANCE Minister Enoch Godongwana yesterday said revenue collection in the first six months of 2025/26 has reached R924.7 billion.

- MAYIBONGWE MAGHINA [e-mail]

The amount collected is higher than the corresponding period last year and R17.5bn, over the 2025 Budget estimates.

Tabling the Medium-Term Budget Policy Statement, Godongwana said the gross tax revenue for 2025/26 has been revised up by R19.7bn.

“The in-year revenue improvement was, in part, due to once off collections from corporations and higher household expenditure. The revenue overrun narrows the 2025/26 budget deficit and enables government to add funding for spending priorities and frontload capital investment,” he said.

Godongwana said the R19.3bn revenue overrun and lower than expected borrowing costs will help to accommodate a proposed R15.8bn increase in non-interest spending while the budget deficit narrows by R8.2bn.

Addressing the Joint Sitting of Parliament, Godongwana said the more than estimated tax revenue of R19.7bn was due to stronger household expenditure which has boosted VAT collection and improvements in corporate tax receipts and dividend tax.