Expert Discusses the Impact of the Budget Speech for South African Citizens
- Finance Minister Enoch Godongwana’s Budget Speech has left questions about how the average citizen is affected
- Godongwana announced tax reliefs and increases to most of the social grants under the Department of Social Development
- Professor Elda Du Toit from the University of Pretoria shared her opinion on how the budget impacts South Africans in both positive and negative ways
Tebogo Mokwena, Briefly News’ Deputy Head of Current Affairs, based in Johannesburg, South Africa, has covered policy changes, cabinet reshuffles, the State of the Nation Address, budget speeches, parliamentary proceedings, and politician-related news, as well as elections, at Daily Sun and Vutivi Business News for over seven years.
Source: UGC
PRETORIA — Finance Minister Enoch Godongwana’s budget speech, which included tax relief and an increase in social grants, touches every aspect of South Africans’ daily lives. Professor Elda du Toit, the Head of the Department of Financial Management at the University of Pretoria’s Economic and Management Sciences, provided a breakdown of how the budget applies to citizens.
Du Toit published an opinion piece entitled “What the 2026 Budget really means for your pocket.” This was after Godongwana delivered his budget speech on 25 February 2026, which received mixed reviews and was rejected by political parties, including the Economic Freedom Fighters. In spite of this, du Toit pointed out that there are rays of hope that South Africans could find in the budget speech.
Du Toit on the tax relief
Du Toit pointed out that Godongwana’s announcement of a tax relief was one of the biggest positives of the budget. The Finance Minister announced that the tax brackets have been adjusted for inflation. Du Toit commented that the adjustment meant that taxpayers are not paying more tax to keep up with the rising costs. She pointed out that not being taxed more at a time when living expenses are skyrocketing is a relief.
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Source: UGC
How social grant increases make a difference
Du Toit said that the increases to social grants, except for the Social Relief of Distress grant, will also make a significant difference in the lives of those who rely on social grants. The child support grant rose by R20, while the old age grant went up by R80. She observed that the rise, including the continuation of the SRD grant, indicates the government’s drive to provide key basic services and give the most vulnerable a helping hand.
Du Toit opined that immediate, rapid economic growth or a wave of new jobs will not be an immediate consequence of the budget. While petrol and sin taxes will rise, the budget does increase investor confidence as the rise in revenue collection means that the government can afford to reduce historic debt.
The government is also pouring more money towards fighting crime, including an increase in the South African National Defence Force and Border Management Authority budgets to combat illegal immigration. She called it a budget “that tries to stop things from getting worse and to build a more stable future.”
“Simply put, it’s less about giving you more money today and more about making sure that the country’s finances— and your own cost of living— do not become more difficult tomorrow,” she said.
SARS targets social media creators
In a similar article, Briefly News reported that the South African Revenue Service announced that social media creators must declare their earnings. This was to boost tax collection in the digital industry.
SARS Commissioner Edward Kieswetter said that SARS is profiling influencers to better understand the growing sector. He remarked that SARS will continue handling influencer cases.
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Source: Briefly News
