Although the growth and inflation outlook looks weak, now 1,2% from the initial projected 1,6% by the International Monetary Fund, the government will prioritise strengthening structural reforms, to place the economy on a trajectory.
Growth is expected to reach 1.6% in 2027, and 2% by 2029.
Speaking at the Mid -Term Budget Policy Statement, Enoch Godongwana, Minister of Finance, said sectors to receive priority are water, energy, infrastructure, public-private partnerships.
About R805 billion will be allocated towards infrastructure grants, in the 2017/18 and 2023/24.
National government transferred R887 billion through infrastructure conditional grants.
A two months subsidy to ease up the fuel and diesel prices is expected to amount to R1,50 for petrol and R3 for diesel, totalling R10 billion, from the 4 November 2026 until the 1 December 2026.
About R10 billion will be allocated to the contingency fund for El Niño and about R1 billion to farmers.
About R1,6 billion would go towards leaners, while R810 million towards recapitalising the South African Police Service fleet at R2.2 billion over the medium term, to enhance the judiciary.
Picture: Enoch Godongwana the minister of Finance accompanied by his team, the deputy Minister Dr David Masondo, Ashor Sarupen, Governor of the South African Reserve Bank, Lesetja Kganyago and the Director General Dr Duncan Pieterse arrive at Parliament to deliverer the Mid-Term Budget Policy Statement. 📸 : Phando Jikelo / Parliament of RSA