Rabia Mayet | rabiamayet@radioislam.co.za

26 February 2026

2-minute read

At the 2026 Budget Speech delivered by Finance Minister Enoch Godongwana, the National Treasury’s efforts to reprioritise the repayment of SA’s national debt by decreasing spending and increasing revenue was shown to have paid off.

According to economist Professor Waldo Krugell, the macro-picture is looking a “lot better” with stabilising the debt and reducing interest payments on it, the budget deficit has narrowed, and debt service costs are falling. The knock-on effect has led to other developments such as reducing inflation targets, making it a “particularly responsible budget,” he stated.

Another “very positive sign” is that government has managed to keep fuel levy increases in line with inflation, as well as the grants that go along with it. Also in line with inflation are social grants that “sustains the buying power of the grant” so that it is not so easily eaten away by inflation.

With an approximate R13 billion in tax relief, income tax brackets and rebates will also be increased in line with inflation, adding “some momentum to the economic recovery we’re all hoping for,” Prof Waldo emphasized, positive that this will translate into business confidence and investment.

As confidence among bond and foreign investors in the JSE increases, Professor Waldo was convinced that some of this positivity will flow across to the investment community, both locally and abroad, although this will take more time. He concluded with the hope that this will also have an influence on the “real investment numbers.”

Listen to the full interview with Ml Junaid Kharsany and Professor Waldo Krugell here.