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<\/p>\nRabia Mayet | rabiamayet@radioislam.co.za<\/p>\n
26 February 2026<\/p>\n
2-minute read<\/p>\n
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At the 2026 Budget Speech delivered by Finance Minister Enoch Godongwana, the National Treasury\u2019s efforts to reprioritise the repayment of SA\u2019s national debt by decreasing spending and increasing revenue was shown to have paid off.<\/p>\n
According to economist Professor Waldo Krugell, the macro-picture is looking a \u201clot better\u201d 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 \u201cparticularly responsible budget,\u201d he stated.<\/p>\n
Another \u201cvery positive sign\u201d 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 \u201csustains the buying power of the grant\u201d so that it is not so easily eaten away by inflation.<\/p>\n
With an approximate R13 billion in tax relief, income tax brackets and rebates will also be increased in line with inflation, adding \u201csome momentum to the economic recovery we\u2019re all hoping for,\u201d Prof Waldo emphasized, positive that this will translate into business confidence and investment.<\/p>\n
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 \u201creal investment numbers.\u201d<\/p>\n