Enoch Godongwana, the Minister of Finance, outlined the macroeconomic strategy of South Africa, as ”supporting economic growth by accelerating public investment, improving the efficiency of public spending and improving the composition of spending by containing the public-service wage bill while increasing capital investment.”
This against a recovering economy, scrapped off the grey list, whose budget deficit has narrowed to 4.5 per cent of GDP for 2025/26, an improvement from 4.8% in the 2025 Budget.
Moreover, the deficit is expected to decrease to 4% in 2026/27 and 3.1 %, the year after.
Gondongwana also said “to sustain fiscal discipline, we intend to continue the engagements on fiscal anchors.”
What’s on the rise?
Firstly, the tax-free annual investment limit will be increased from R36 000 to R46 000 per year.
The limit to retirement fund deductions will be raised from R350 000 to R430 000.
Sin tax for 20-pack of cigarettes will rise from R22.81 to R23.58, Pipe tobacco by 28 cents per 25 grams, and cigarette tobacco by 87 cents per 50 grams.
Cigars are also rising by R4.56 per 23 grams.
Similarly a 340 millilitre can of beer or cider increases by 8 cents, while a 750 millilitre bottle of wine goes up by 15 cents and a 750 millilitre bottle of spirits by R3.20.
The general fuel levy will also go up by 9% per litre for petrol and 8% per litre for diesel.
The carbon fuel levy will go up by 5 % per litre for petrol and 6% for diesel.
The Road Accident Fund levy will increase by 7% per litre.
Social grants for 2026/2027, are allocated R292.8 billion, enabling the following increases in the old age grant, disability grant and care dependency grant rise by R80 in April 2026, to R2 400.
The war veterans grant also increases by R80 to R2 420.
The foster care grant goes up to R1 290 in April, a R40 increase and to R1 300 in October, a R10 increase.
The child support grant and grant-in-aid grant increases by R20 to R580.
R1 trillion for infrastructure, of which R577.4 billion will be spent by state owned companies and other public entities; R217.8 billion by provinces; and R205.7 billion by municipalities.
Picture: Supplied
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