The African Christian Democratic Party (ACDP) approaches this year’s Medium-Term Budget Policy Statement (MTBPS) with a clear message: South Africans deserve hope, accountability, and value for every tax rand they pay.
Over the past year, our nation has faced a combination of challenges – high crime, poor service delivery particularly at municipal level, and a lack of jobs – that have left many citizens frustrated and disillusioned. The 2026 medium term budget framework must not only acknowledge these realities but also chart a credible path toward economic recovery and social stability.
The ACDP is cautiously optimistic that the MTBPS will bring good news for the country particularly regarding the country’s debt levels, with revenue collection expected to beat forecasts, falling levels of debt and state expenditure largely within budget. At the same time, however, high levels of wasteful, irregular and corrupt state expenditure must still be addressed. The billions of rands stolen through state capture and corruption must be collected and the offenders placed behind bars.
We expect a possible tax windfall – that could be up to R50bn above February’s Budget due mainly to higher commodity prices – particularly gold and platinum – and increased personal income tax and value-added tax (VAT) receipts alongside improvements in tax collection and broadening the tax pause.
As a result, we expect a narrowing of the budget surplus to below 4% of GDP which was previously forecast, with the primary surplus expected to increase to about 1.8% of GDP – up from 1.4% previously forecast. This is good news for our fiscal health and for investor confidence.
We were promised that debt would peak at about 77.3 % of GDP this year (it was 78.9% in 2025) and will be keeping the Minister to his word in this regard. If he keeps his word despite a sluggish economic growth and fuel price pressures, it should result in a ratings agency upgrade and increased investor confidence.
However, the ACDP warns against complacency. The Minister of Finance will need to remain prudent, especially given that the economy contracted in the last quarter and overall growth is now lower than earlier forecasts. Added to this are significant geopolitical risks that could impact trade, investment, and commodity prices.
While the numbers may look better on paper, ordinary South Africans are still under severe pressure. Households are battling with higher administered costs – electricity tariffs, fuel prices, and transport costs continue to rise. Businesses, especially small and medium enterprises, are struggling to absorb these increases while keeping their doors open and retaining staff.
The ACDP believes that Minister Godongwana must announce that some of the tax windfall will go towards cushioning the impact of the rapid rise in fuel prices.
In this regard, the ACDP supports the R10 billion Special Appropriation Bill which aims to provide targeted relief from rising fuel prices by allocating funds to the Equalisation Fund within the Central Energy Fund. This will stabilise fuel costs and ease the financial pressure on motorists and businesses, particularly ahead of the busy December period. We call on the speedy passage of this Bill to ensure immediate price reductions. Instead, the funding will be used strategically to buffer against sharp increases, ensuring a more predictable pricing environment and supporting economic resilience.
We also remain concerned about the sluggish economic growth (with a contraction in the last quester) and the high levels of unemployment in the country. Allied to this is that private sector fixed capital investment is still too low at about 11.46% of GDP with businesses sitting on an estimated R1.8 trillion in cash reserves and short-term bank deposits. We trust that the MTBPS will, with a more positive outlook, result in higher private sector fixed capital investment, which will stimulate economic growth and job creation.
The ACDP insists that every rand collected in taxes must deliver real value. Citizens have the right to demand proper municipal services – clean water, reliable electricity, safe streets, and functional infrastructure. These are not luxuries; they are the basics of a dignified life and a thriving economy.
As we head toward the local government elections, the ACDP reaffirms our commitment to:
- Restoring service delivery at municipal level.
- Ensuring fiscal discipline so that wasteful expenditure is eliminated.
- Prioritising job creation through policies that support entrepreneurship and investment.
- Protecting the vulnerable, including ensuring that social grants are accessible and sufficient.
The 2026 Medium-Term Budget Policy Statement is an opportunity for government to show that it is listening to the people, acting in their best interests, and committed to building a future where every South African can thrive.
The ACDP will hold the government of national unity accountable to these principles – and we invite every taxpayer, every business owner, and every citizen to join us in demanding nothing less.
