Financial markets cheer as South Africa tables its National Budget after third attempt

THE financial markets have warmly embraced the tabling of South Africa's National Budget for the third time on Wednesday, with the rand remaining stable below the psychological R18-mark to the US dollar.

- SIPHELELE DLUDLA

Wichard Cilliers, director and head of market risk at TreasuryONE, said the rand held steady against the US dollar as the budget speech was delivered without hiccups.

"It has been well received and now needs to be passed by Parliament. The implementation of the budget remains key, and we will need to see if the government can actually deliver," Cilliers said.

"The dollar fell for its third straight day of losses, reaching the lowest level in a month. Persistent concerns over the US budget deficit drove the decline, as did market speculation around the Trump administration's support for a weaker currency."

Tabling the 2025 Budget Review before Parliament on Wednesday, Finance Minister Enoch Godongwana emphasised that the government's strategy prioritised fiscal discipline while simultaneously investing in growth.

Godongwana said the National Treasury was set to implement a significant reduction in government spending totalling R68 billion over the next three years.

This decision followed an extensive spending review of R300bn, aimed at addressing inefficiencies in public expenditure as the country grapples with fiscal constraints in the absence of new tax revenue.