Finance Minister Enoch Godongwana is set to table the 2026 Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, 21 October, outlining government’s updated fiscal outlook and spending priorities for the next three years.
The MTBPS, commonly referred to as the “mini-budget”, provides an update on the country’s finances halfway through the financial year. It revises economic and revenue forecasts, adjusts government spending where necessary and sets out the fiscal framework that will guide the national budget over the medium term.
This year’s statement is expected to be delivered against a more positive revenue backdrop.
Stronger-than-expected corporate income tax collections, together with higher VAT and personal income tax receipts, have improved government’s fiscal position. Economists expect National Treasury to announce a narrower budget deficit than previously projected, while reaffirming its commitment to stabilising public debt.
One of the key issues expected to feature in the MTBPS is government’s proposal for a fiscal anchor, aimed at strengthening budget discipline, reducing borrowing and improving investor confidence. Treasury has indicated that the proposal forms part of its long-term strategy to place public finances on a more sustainable path.
Infrastructure and municipal service delivery are also expected to receive attention. Government recently secured a €300 million (about R5.6 billion) concessional loan to support National Treasury’s Metro Trading Services Reform programme. The initiative is intended to improve electricity, water, sanitation and waste management services across South Africa’s eight metropolitan municipalities, benefiting more than 22 million residents.
Despite the improved revenue outlook, Treasury continues to face significant challenges. South Africa’s economy remains under pressure from slow economic growth, high unemployment and rising fuel costs. These factors are expected to influence government’s spending decisions as it balances demands for increased public services with the need to maintain fiscal discipline.
The 2026 MTBPS will provide important insight into government’s plans for economic growth, infrastructure investment, debt management and public spending ahead of the 2027 National Budget. Communities, businesses and investors will be watching closely to see how Treasury intends to strengthen the country’s finances while supporting service delivery and economic development.
