Advert

Advert – scroll down

The 2026 Budget Speech (25 February)

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Download [778.08 KB]

2026 Budget Speech delivered by Minister Enoch Godongwana

Budget 2026: Where the Minister Listened, and Where the Battle Continues

The 2026 Budget Speech has officially been tabled by Finance Minister Enoch Godongwana. For the thousands of active citizens who participated in our “Budget Tips 2026” campaign, the question is simple: Did the government actually listen to the 4,023 submissions sent through our platform?

The answer is a resounding yes in some critical areas—including a massive, direct victory for small businesses—but it also highlights stark ideological divides where public pressure must urgently continue.

Here is the definitive breakdown of how your Budget Tips stacked up against the National Treasury’s 2026 allocations.

The most direct and celebrated alignment between public demand and government action was the adjustment of the compulsory VAT registration threshold.

During our campaign, a targeted proposal was submitted to raise the threshold from R1 million to R2.3 million to account for 17 years of inflation and protect the razor-thin margins of SMMEs. The Minister not only implemented this change but explicitly cited a “tip from the public” as the catalyst. Effective 1 April 2026, the threshold is officially R2.3 million—a massive victory that proves well-researched, data-driven public participation can rewrite national policy.

What the Public Demanded: Participants were unequivocal that municipal funding must be strictly conditional. Citizens demanded an end to unconditional bailouts, asking that allocations be tied to actual performance, maintenance of aging water infrastructure, and payment compliance with bulk suppliers like Eskom.

What the Minister Delivered: Treasury heard this call. The Minister announced a R27.7 billion performance-linked reform for metro trading services (electricity, water, sanitation, and solid waste). This marks a significant shift away from blank checks, mirroring the public’s demand to enforce accountability at the local government level.

What the Public Demanded: The consensus on DearSouthAfrica was loud and clear: stop the bailouts, aggressively privatise failing entities, and replace cadre deployment with merit-based appointments. Citizens view SOEs as a primary drain on the fiscus.

What the Minister Delivered: The Treasury remains committed to a state-led recovery model. While the Minister praised structural reforms under Operation Vulindela, he avoided any mention of wholesale privatisation. Furthermore, instead of cutting off funding, he announced a R5.8 billion allocation for PRASA’s rolling stock fleet renewal. The ideological clash here remains unresolved.

What the Public Demanded: “Government spending” was the single most dominant issue in our report. Citizens demanded drastic cuts to the bloated cabinet, the removal of VIP blue-light brigades, and the alignment of the public wage bill with private-sector realities.

What the Minister Delivered: The Minister proudly noted that for the first time in 17 years, the national debt will stabilise and the budget deficit has narrowed. However, there was zero mention of reducing the size of the executive or cutting administrative perks. Efficiency was found elsewhere, such as an enhanced authentication process for social grants expected to yield R3 billion in savings by reducing fraud, but the executive wage bill remains largely untouched.

What the Public Demanded: Respondents expressed that the shrinking formal tax base is “bleeding.” The overwhelming suggestion was to broaden the tax net—targeting the informal sector and un-taxed industries—rather than squeezing existing taxpayers.

What the Minister Delivered: The Minister offered some relief for savers by increasing the tax-free annual investment limit to R46,000 and raising retirement fund deductions. However, this was countered by increases across the board for the general fuel levy, the carbon fuel levy, and the Road Accident Fund levy. While income tax wasn’t hiked, the cost of living and transport will directly increase for the very households pleading for relief.

The 2026 Budget proves that the wall between the public and the policymakers is not impenetrable. The R2.3 million VAT threshold victory and the shift toward performance-linked municipal funding show that when citizens provide specific, practical solutions, the government can be forced to act.

However, the continued funding of SOEs and the bloated executive wage bill remind us that our work is far from over. We don’t just watch the budget; we must continue to shape it.

Public participation report – with all public comments

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Download [2.13 MB]

This report was delivered to The National Treasury on 17 February 2026.

If you see value in what we do, please chip in – even a small amount helps tremendously.

Questions and answers

thank you PMG for this content

Every input is read and 10 of the most impactful tips are selected. These are sent to one of the divisions within the National Treasury that are responsible for the Budget, where a further selection of 5 tips is made. These are then sent to the Ministry where one winning tip is selected. The tip would then be included in the Minister’s speech and the winner mentioned in the speech.

To voice their opinions and make their voices heard on issues of national importance and budget allocations. The Budget affects each and every citizen. Their participation also contributes to the rankings South Africa receives in various indices in which it participates, such as the Open Budget Index which has public participation. National Treasury uses the tips and any other platform to reach out to the public.

a) the types of issues and priorities South Africans raise:

Response: They are often focused on frontline service delivery areas of the budget—and any topical issue at the time. Among others, South Africans want to see a Budget that works for the people; more allocations for health and education; tax relief for businesses and individuals, to name but a few. Some people also use the platform to share their struggles with ministers and request that they make a budget to meet their needs, while others send advice to ministers. In a recent media statement, the Treasury highlighted certain areas where people should submit their budget tips on, including:

    • government spending priorities
    • addressing a large budget deficit
    • stabilising State-Owned Entity finances
    • energy funding solutions
    • tax revenues
    • debt sustainability
    • municipal finances
    • any other economy-related topics

b) budget literacy in South Africa:

Response: It is one very important part of public participation. With a higher budget literacy in a country, public participation yields better results. In that regard, Vulekamali Phase 2 has a particular focus on that- enhancing citizens’ budget literacy. The public can use this platform to interact with budget information: South African Government Budgets 2024-25 – vulekamali.

Response: The Budget presented by the Minister is not the final budget but a proposal that has to be scrutinised and approved by Parliament.

The Finance and Appropriations committees in both Houses first consider and hold hearings on the fiscal framework and the Division of Revenue and Revenue Proposals. When these are adopted by Parliament, portfolio and select committees consider the various departmental allocations. The NA debates each budget in extended public committees (EPCs).

The law specifically makes provision for public participation in this stage, which allows for the input of civil society and interest groups in the legislative process. Parliament typically passes the budget four months after the start of the financial year. The adjustments budget is introduced six months into the financial year and provides for any adjustments to departmental budgets. Once the budget has been passed, funds can be allocated to government departments and other entities, and implementation of government plans and projects can begin.

Lastly, after the budget is presented, the National Treasury distributes the People’s Guide to the Budget, which can be accessed on the National Treasuries website.

Budget review 2025

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Download [1.29 MB]

Interested in finding out how the South African budget process works? Learn about the budget process, how it relates to our constitution and the role that it plays in a modern day

Find out why the national budget is important to all South Africans, and how vulekamali.gov.za can help you explore and understand the budget.

Statements and media releases

Click on a logo to view.

Want to display your organisation’s statement? Click here.