Finance Minister Enoch Godongwana is set to deliver the Medium Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, 21 October, at 14:00.
He is expected to repeat South Africa’s commitment to fiscal consolidation, which means cutting the deficit and keeping debt under control, The South African reported.
The mid-term budget gives an update on the government’s finances in the 2026/27 financial year. It covers how much tax was collected and how much was spent.
It also sets out the National Treasury’s plans for the next three years.
Economists said tax collections have been stronger than expected. They said this has given the government some room to breathe.
According to the report, Treasury collected more over the past six months. Personal income tax, value-added tax (VAT) and company tax all helped.
High commodity prices supported company tax income. This left government departments in a better position than they might have been.
Economists urged Treasury not to spend all the extra money. They said it could instead help lower the budget deficit and improve the country’s credit rating outlook.
Godongwana is expected to keep the focus on bringing public debt under control. There is talk that Treasury could announce a formal fiscal anchor, a fixed rule to guide how it manages the country’s finances.
Rising fuel prices are also likely to come up. Higher fuel costs can push up the prices of transport, food and other basic goods.
This has led to talk that Treasury could cut the fuel levy again to help consumers. The government gave temporary fuel levy relief earlier in 2026.
Households are also under pressure from higher inflation and interest rates, according to the report.
The government’s approach to spending has drawn criticism from organised labour.
At its 15th National Congress, the Congress of South African Trade Unions (COSATU) criticised what it called the government’s continued neoliberal policies.
The union federation said spending cuts and limits on wages have weakened the state’s ability to fight unemployment, poverty and inequality.
COSATU Deputy General Secretary Gerald Twala said these measures were political choices and not economic decisions that could not be avoided.
Some civil society groups want a bigger say on tax policy. Some organisations continue to call for a wealth tax.
They argue that the tax burden should move away from working-class households facing rising living costs. The MTBPS does not usually deal with detailed changes to individual taxes.
Economists said continued efforts to control spending could improve investor confidence. They said it could also support future credit rating upgrades.
According to the report, a lower deficit and stable debt could later reduce borrowing costs for investment and development, which would support economic growth.
Source: this article is based on reporting by The South African. Image: The South African. Written with the help of AI and published by the Tzaneen Voice News desk. See our Editorial Standards.
Kgomotso Maake covers news and politics for Tzaneen Voice. Kgomotso reports on government, Parliament, municipalities, courts, crime and service delivery across South Africa, with a close eye on how national decisions reach towns like Tzaneen and the wider Limpopo province. Stories are written in plain English and focus on the facts: who made the decision, what it means, and what happens next.