Opposition parties have criticised Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS), with calls for more ambitious economic reforms, while others have raised concerns about the timing of the planned fuel levy reduction.
Godongwana delivered the MTBPS in the National Assembly at Parliament in Cape Town on Wednesday, announcing that government had revised its economic growth forecast for 2026 down to 1.2%, from the 1.6% projected in the February Budget.
The Democratic Alliance (DA) says more far-reaching reforms are needed to grow the economy to at least 3.5% and stimulate job creation.
DA MP Kingsley Wakelin says the revised growth forecast is insufficient to make a meaningful impact on unemployment.
“The DA believes that faster and more far-reaching growth reforms are now urgent. The 2026 MTBPS cuts this year’s growth forecast from 1.6% to 1.2%. This is not enough to move the needle on unemployment,” Wakelin says.
He adds that bold reforms extending beyond the National Treasury are needed to achieve the country’s economic growth targets.
Meanwhile, the uMkhonto weSizwe Party (MKP) has dismissed the MTBPS as rhetorical and a waste of time.
MKP MP Thulani Gamede questioned the timing of the planned fuel levy reduction, suggesting that it was politically motivated ahead of the upcoming Local Government Elections.
Gamede accused the Government of National Unity (GNU) of prioritising its political interests over the needs of South Africans.
The Economic Freedom Fighters (EFF) has also criticised the planned fuel levy relief, accusing Godongwana of using the measure to improve the African National Congress’s (ANC) electoral prospects.
EFF MP Sinawo Thambo questioned why the reduction would only take effect on 4 November, arguing that the timing raised concerns about the possible use of government policy to influence voters.
“He’s using it to ensure that he enhances his political party’s chances at the polls on the 4th of November because why does he not adjust a fuel levy today (Wednesday) and wait for the 4th of November, which is voting day, and then adjust it downwards within a month, and then our people go back to the same situation,” Thambo says.
He called for Parliament to exercise greater oversight over such decisions.
United African Transformation (UAT) leader Dr Wonderboy Mahlatsi says the MTBPS also fails to present a comprehensive plan to reduce food prices and ease the financial burden on millions of poor households.
Mahlatsi says that while temporary fuel levy relief could provide short-term assistance by reducing transport costs, it does not address the underlying challenges facing struggling families.
He says the budget lacks a comprehensive strategy to lower food prices, strengthen local food production and expand land-based economic opportunities for disadvantaged communities.
Mahlatsi adds that although resources have been allocated to agricultural support services, land reform and agricultural development should play a more central role in the country’s economic transformation.