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Godongwana to Table MTBPS With Tight Spending Focus and Possible Lower Inflation Target

Analysts expect a consolidation plan without major tax hikes alongside a signal on a 3% inflation anchor.

Overview

  • Finance Minister Enoch Godongwana presents the Medium-Term Budget Policy Statement at 14:00, setting a three-year fiscal framework and updated forecasts.
  • Economists expect no major immediate tax changes, with attention on bracket adjustments and the status of medical tax credits as NHI funding debates continue.
  • The Reserve Bank has shifted de facto to the bottom of the 3%–6% range, and Treasury is expected to indicate support for a 3% anchor even if a formal decision comes later.
  • Revenue has surprised on the upside as SARS collections rise and precious‑metal prices surge, with Nedbank forecasting a roughly R60 billion overshoot that could ease borrowing needs.
  • Growth remains weak near 1.2%, keeping debt risks in focus despite tailwinds from lower inflation, improved SOE performance and South Africa’s removal from the FATF greylist.