On March 12, 2025, Finance Minister Enoch Godongwana delivered a heartfelt Budget Speech that laid out a clear plan to tackle our long-standing economic challenges and drive inclusive growth. The speech acknowledged that our GDP has barely grown for over a decade, with current growth levels far below what is needed. The government aims to boost the primary surplus from 0.5% to 0.9% of GDP while keeping debt steady at 76.2% and narrowing the budget deficit.
More than R1 trillion will be invested in transport, energy, and water infrastructure—efforts designed to improve public services and unlock new economic opportunities. A modest increase in VAT is planned, gradually reaching 16% by 2026/27, to raise additional revenue without overburdening households. Alongside these measures, reforms under Operation Vulindlela will help remove barriers to growth and strengthen government capacity.
For a full account of the speech, please see the attached PDF.
