Enoch Godongwana Announces Fuel Relief in Medium Term Budget

Finance Minister Enoch Godongwana tabled the 2026 Medium Term Budget Policy Statement on October 21, outlining a strategy to move from fiscal fragility toward sustainable public finances. To alleviate cost-of-living pressures, Godongwana announced R10 billion in temporary fuel relief starting November 4. The measure reduces the fuel levy by R1.50 per litre for petrol and R3 for diesel until December 1, followed by smaller reductions of R1 for petrol and R1.50 for diesel until January 5. This relief is funded by returning R10 billion from the Central Energy Fund to the National Revenue Fund's contingency reserve.

The budget includes R20.5 billion in additional funding for provincial health and education, R21.8 billion for local government basic services, and R13.4 billion for metros. Other key allocations include R6.9 billion for the South African Revenue Service to improve tax collection, R3.8 billion to hire 3,552 social workers to combat gender-based violence, and R823 million for the South African National Defence Force to fight gang crime and illegal mining.

Economic outlooks were adjusted downward, with the 2026 real economic growth forecast lowered to 1.2% from 1.6% due to global volatility and conflict in the Middle East. While the government reported a primary surplus of R139.9 billion and a stabilized debt-to-GDP ratio of 78.4%, high interest costs of R441.5 billion resulted in a main budget deficit of R301.6 billion. Godongwana proposed new fiscal guardrails and modernizations to the Public Finance Management Act to strengthen accountability.