Minister Enoch Godongwana informed Members of the National Assembly that the government will spend R2.67 trillion in the 2026/27 financial year. This spending includes a proposed R5 billion in the contingency reserve to finance repairs after various natural and societal disasters declared since the Medium-Term Budget Policy Statement.
He said government spending remains highly redistributive. The social wage bill accounts for more than 60 per cent of non-interest spending over the medium term. Basic education, health and social protection constitute 70.3 per cent of the social wage in 2026/27, providing support to 13.6 million school children, healthcare services to 84 per cent of the population and social grants to 26.5 million beneficiaries.
Social grants for 2026/27 are allocated R292.8 billion, enabling the following increases:
- The old age grant, disability grant and care dependency grant rise by R80 in April 2026, to R2 400.
- The war veterans grant also increases by R80 to R2 420.
- The foster care grant goes up to R1 290 in April, a R40 increase and to R1 300 in October, a R10 increase.
- The child support grant and grant-in-aid grant increase by R20 to R580.
Meanwhile, the social relief of distress continues in its current form over the year ahead.
On peace and security, the President in his State of the Nation Address announced the deployment of the defence force alongside police to fight illegal mining and gangsterism. To support this initiative and other efforts to intensify law and order, spending on peace and security increases from R268.2 billion in 2025/26 to R291.2 billion in 2028/29.
The Border Management Authority has been allocated an additional R990 million over the medium term to build capacity by filling 738 positions.
R2.7 billion is added to defence over the medium term to improve operations, including to maintain the South African Air Force’s fighter capability. In addition, the government has allocated R1 billion to the police service, and another R1 billion to the SANDF, through the CARA fund for the fight against organised crime.
Over the medium term, R883.8 million is shifted from the Department of Justice and Constitutional Development to the Office of the Chief Justice. This will enable the Office of the Chief Justice to manage its own budgets, enhancing its independence from the executive from the first of April. Similar arrangements for the funding of Parliament are being undertaken, in the spirit of separation of powers. An additional R687 million has been allocated to increase capacity in the judiciary.
Arrange a tour