The South African National Budget
Rising to the challenge: South Africa’s commitment to economic resilience
On 12 March 2025, the Minister of Finance, Enoch Godongwana, delivered the highly anticipated National Budget Speech, following a postponement on 19 February 2025.
As part of the proposed fiscal measures, the government plans to increase the value-added tax (VAT) rate by 0.5 percentage points in 2025/26, followed by another 0.5 percentage points in 2026/27, resulting in a 16% VAT rate by 2026/27. The implications for lower-income households necessitate robust mitigation strategies beyond those indicated in the budget.
Despite a new three-year wage agreement to reduce budget uncertainty, managing the public sector wage bill remains challenging. A sustainable approach to remuneration and productivity is needed to align with long-term fiscal plans and ensure effective service delivery.
The simplification of public-private partnership regulations is good news as attracting private collaboration will be essential to solve some of the country’s largest challenges such as water, rail and electricity.
For more post-budget insights, click on the below tabs.
2025/26 Post-National Budget Commentary
2025/26 Pre-National Budget Predictions
Click on the tabs below to get access to pre-Budget commentary and insights from our subject matter experts.
Thank you for exploring our 2025/26 National Budget speech insights
Itireleng Kubeka
