South Africa to amend Budget process after political wrangling
South Africa’s National Treasury plans to revamp its 2026 budget-preparation process after political wrangling saw this year’s proposal altered twice.
“South Africa’s current budget process has not kept pace with the country’s evolving fiscal, institutional, and political realities,” the Treasury said in a statement on Wednesday.
“A comprehensive budget reform will be implemented for the 2026 budget that aims to clarify trade-offs, reduce waste, and prioritise high-impact programmes.”
Its recent review of the budget process revealed “fragmented decision-making, poor policy-budget alignment, and weak consensus on trade-offs in a context of competing priorities and limited fiscal space,” the Treasury said.
Proposals to raise taxes saw this year’s budget revised twice after members of a 10-party ruling coalition, formed when the African National Congress lost a parliamentary majority in elections last year, opposed it.
The Democratic Alliance, the second-largest member in the grouping, called on Finance Minister Enoch Godongwana to rather look at ways to fire up the economy and review spending.
Lawmakers will today vote on the Appropriation Bill, a key piece of legislation required to advance the third version of the budget.
By law, the Treasury is authorised to prescribe the format for the annual budget. It will retain the fiscal objectives outlined in the 2025 plan, including stabilising debt, achieving a primary surplus, and increasing infrastructure investment into next year’s one, it said.
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