Finance Minister Enoch Godongwana presented the Medium-Term Budget Policy Statement on 12 November 2025, emphasizing economic growth, structural reforms, and fiscal discipline amid global uncertainties. The statement forecasts 1.2% GDP growth for 2025 and an average of 1.8% through 2028, with debt stabilizing at 77.9% of GDP. Markets reacted positively, with the rand strengthening to 17.05 against the dollar.
In Parliament on 12 November 2025, Finance Minister Enoch Godongwana tabled the Medium-Term Budget Policy Statement (MTBPS), highlighting progress in stabilizing public finances despite low growth. The document projects real GDP growth of 1.2% for 2025, doubling the previous year's rate, and averaging 1.8% from 2026 to 2028. This outlook is supported by reforms in energy, logistics, and water sectors under Operation Vulindlela.
Key announcements include a new inflation target of 3% with a 1% tolerance band, aligning South Africa with emerging market peers to lower borrowing costs and boost investment. Godongwana stated, “This will reduce the cost of living and borrowing costs for households, businesses and the government, supporting higher long-term economic growth and job creation.” Tax revenue for 2025/26 was revised upward by R19.7 billion, driven by stronger VAT and corporate taxes, averting immediate tax hikes.
Fiscal measures feature a Targeted and Responsible Savings initiative yielding R6.7 billion in efficiencies, including tackling double-dipping in social grants and ghost workers—8,854 cases flagged for verification starting January 2026. Debt is set to stabilize at 77.9% of GDP in 2025/26, with the budget deficit narrowing from 4.7% to 2.9% by 2028/29. Capital spending will grow fastest at 7.3% annually, prioritizing infrastructure like rail and electricity.
GNU partners reacted positively: ANC's Zuko Godlimpi stressed “growth, growth, growth” for jobs, while DA's Mark Burke welcomed signs of listening but urged scrapping wasteful programs. IFP's Nhlanhla Hadebe praised local government reforms. However, uMkhonto Wesizwe's Des van Rooyen deemed the statement not credible. Anti-austerity protests near Parliament, led by Cosatu and Saftu, decried cuts to health and education, with Cosatu's Matthew Parks calling for filling verified ghost posts with real workers.
The MTBPS, anchored on macroeconomic stability, structural reforms, state capability, and infrastructure, signals consensus in the Government of National Unity after earlier budget tensions.
