Pre National Budget Speech 2026

All eyes are on Finance Minister, Enoch Godongwana, as he prepares to deliver the 2026 National Budget Speech next week. Based on last year’s Mid-Term Budget Policy Statement and current economic indicators, government is expected to prioritise fiscal discipline and efforts to balance the budget. If VAT and personal income tax remain unchanged, as widely anticipated, consumers will need to consider what this means for their own finances.

The real concern for consumers is bracket creep, - especially if tax brackets are not adjusted in line with inflation.  The reality is that many South Africans may find themselves paying more tax despite not earning more in real terms. In effect, salary increases meant to keep up with rising living costs could push taxpayers into higher brackets, reducing their take-home pay and placing further strain on already tight household budgets.

Although there have been encouraging signs - including South Africa’s removal from the grey list and improvements in the latest Consumer Price Index (CPI) figures, as well as declining unemployment rates - the country is not entirely in the clear.

I am also particularly interested in the government’s plans for infrastructure, especially after the President highlighted it as a key focus during the State of the Nation Address (SONA) last week. It will be important to see what extensions or adjustments are proposed in this area. Infrastructure may not always seem directly linked to our daily expenses, but it plays a significant role in shaping inflation, food prices, fuel costs, and overall service delivery – another area that impacts consumer’s pockets.

What this means is that, for example, when the country has a stable supply of energy, there’s a decline in production disruptions and fuel pressures. This subsequently leads to reliable water and logistics systems - improving service delivery and business confidence.

Simply put, the quality and efficiency of roads, energy supply, water systems, and logistics networks influence the prices consumers will pay for food, transport, electricity, etc. Our country needs to get to a place where infrastructure functions well, in order to avoid inefficiencies and higher operating costs that get passed on to households. The government’s commitment to these investments will determine whether they ease financial pressure on consumers or add to the strain on already stretched budgets.

Consumers should therefore pay close attention, as even modest improvements can meaningfully ease financial pressure and help households budget more effectively for the remainder of 2026.