Political parties have offered varied reactions to the national budget tabled by Finance Minister Enoch Godongwana, with some welcoming its reforms and others criticising it as overly cautious and investor-focused.
The African National Congress (ANC) said the renewed focus on local government was among the most encouraging aspects of the speech.
ANC spokesperson Mahlengi Bhengu-Mtsiri said meaningful change for communities would depend on reforms aimed at job creation, improving municipalities and expanding bulk infrastructure.
She noted that rapid growth in formal settlements, often without proper spatial planning, had placed severe strain on municipal systems, compromising service delivery.
Meanwhile, the Democratic Alliance (DA) described the budget as reflective of the broader Government of National Unity rather than a single party agenda.
DA finance spokesperson Mark Burke welcomed the increase in the VAT registration threshold from R1 million to R2.3 million, saying it would reduce administrative pressure on small and emerging businesses. He said the move formed part of a package of 22 adjusted limits and thresholds aimed at easing compliance costs and supporting enterprise development.
The Economic Freedom Fighters (EFF), however, argued the budget fell short on public infrastructure investment. Party leader Julius Malema said government should prioritise strengthening state capacity and directing more funds into infrastructure to create jobs, rather than focusing on pleasing international investors and institutions such as the International Monetary Fund.
He said greater public investment was key to addressing unemployment, particularly among young people.
The United Democratic Movement (UDM) labelled the budget too conservative. UDM MP Nqabayomzi Kwankwa said it did not amount to a growth-oriented plan and questioned whether the allocation of about 10% of funds to local government would meaningfully improve struggling municipalities. He also expressed doubt that existing grants would adequately address service delivery challenges.
By contrast, the African Christian Democratic Party (ACDP) struck a more optimistic tone. MP Steve Swart welcomed the decision not to increase personal or corporate taxes and praised bracket relief for salaried workers.
However, he cautioned that South Africa’s high debt burden estimated at 78.9% of GDP and rising debt-service costs continued to crowd out spending on essential services such as education, healthcare and safety.
Build One South Africa leader Mmusi Maimane welcomed the R1 billion allocation to policing, describing crime as a major obstacle to economic growth. He said improved safety, alongside infrastructure and small business support, was critical to attracting investment and reducing poverty.
Meanwhile, Rise Mzansi MP Makashule Gana said the planned scaling down rather than immediate termination of the public transport network grant was a practical compromise. He said the phased approach would give municipalities time to plan and adjust.
Overall, the budget appears to have drawn cautious approval from some quarters and sharp criticism from others, highlighting ongoing debate over how best to balance fiscal discipline, growth and service delivery.