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. 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. A key announcement was the formal adoption of a 3% inflation target, replacing the previous 3–6% range.
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 socio-economic 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.” Roets said that many households were “stretched to the limit by high prices, stagnant wages and mounting debt repayments,” warning that the absence of relief measures could deepen the financial strain on families.
Economists continue to warn that South Africa’s debt-to-GDP ratio, currently sitting around 77%, places the country at risk of entering a debt trap. With more than half the population living in poverty and millions relying on credit to survive, many feel the budget falls short of what is needed to ease immediate pressures.
Roets further said, “We need solutions that relieve the pressure rather than exacerbate it. Without urgent measures to support consumers, we risk deepening inequality and weakening the very foundation of our economy.” As the government looks to mobilise private investment and strengthen public infrastructure, citizens continue to grapple with rising costs and stagnant wages.