Economist Duma Gqubule says government should place economic growth and job creation at the centre of its policy agenda, arguing that stabilising debt levels should not come at the expense of addressing rising unemployment and declining living standards.
His remarks come ahead of the national budget presentation by Finance Minister Enoch Godongwana, who is expected to table the 2026 Budget in Parliament of South Africa on Wednesday. The address will outline government’s plans for economic growth, public spending and fiscal stability.
Gqubule criticised what he described as an overly cautious fiscal approach, saying officials are creating the impression that the economy has improved while many South Africans continue to face hardship.
“The Budget Speech takes place within the context of an unprecedented economic crisis. Our GDP has grown by 1.1% a year for 17 years. By the end of 2025, our GDP per person was lower than it was in 2007. We are heading for two decades of decline in average living standards,” he said.
He pointed to unemployment as a key indicator of economic strain, estimating that about 12.4 million people are currently without work.
According to Gqubule, government’s focus on debt stabilisation overlooks what he calls the real problem weak economic growth.
“We have a GDP growth problem. The Budget is not an accounting exercise that is disconnected from the real economy. If we must break the bank to get the economy growing, we must break the bank,” he said, adding that faster growth would help create jobs and reduce the debt-to-GDP ratio over time.
He called for increased investment in infrastructure and expanded public employment programmes, arguing that these sectors have strong potential to stimulate economic activity and absorb job seekers.
With the budget set to be closely watched by investors and citizens alike, Gqubule said government must shift its focus from balancing the books to rebuilding the economy because, as he implied, spreadsheets do not hire people, growth does.