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Parliament, Tuesday, 24 March 2026 – In a significant step in the national budget process, both Houses of Parliament, the National Assembly (NA) and the National Council of Provinces (NCOP), adopted the 2026 Fiscal Framework and Revenue Proposals during their respective plenary sittings this afternoon.
The 2026 National Budget was tabled in Parliament on 25 February 2026 by the Minister of Finance, Mr Enoch Godongwana, in terms of Section 27 of the Public Finance Management Act, Act No. 1 of 1999 (PFMA), and Section 7(1) of the Money Bills Amendment Procedure and Related Matters Act, Act No. 9 of 2009 (Money Bills Act).
The Fiscal Framework outlines the government’s macroeconomic policy for the financial year, including revenue projections, expenditure priorities and borrowing requirements. In processing the framework, the NA’s Standing Committee on Finance and the NCOP’s Select Committee on Finance received briefings from the National Treasury and the South African Revenue Service (SARS), as well as inputs from the Parliamentary Budget Office (PBO) and the Financial and Fiscal Commission (FFC).
The PBO noted that, while the government aims to stabilise debt, public debt levels remain high and continue to pose risks to fiscal sustainability. It also raised concerns about the composition of expenditure, noting that a significant portion of the budget is allocated to debt servicing and compensation of employees, leaving limited room for developmental spending. It further stressed the importance of improving spending efficiency and accountability, particularly in infrastructure investment, and highlighted the need for stronger oversight and transparency in the budget process.
The standing and select committees also undertook an extensive joint public participation process, including public hearings held on 10 March 2026, during which 32 submissions were received and considered.
As part of their observations and recommendations, the committees supported the 2026 Budget and commended the National Treasury and SARS for tabling a progressive budget, which maintains the social wage over the medium term. However, the committees expressed concern that the current growth trajectory remains insufficient to meaningfully address unemployment or improve the livelihoods of South Africans.
The committees further raised concerns regarding the adequacy of social support measures, noting that existing grant increases may not sufficiently cushion vulnerable households against the rising cost of living. In this regard, the committees underscored the need to review the Social Relief of Distress (SRD) grant, including consideration of inflation adjustments and its potential evolution into a more permanent income support mechanism.
On local government, the committees noted that municipalities receive a limited share of nationally raised revenue, despite their critical service delivery role. A review of the funding model, coupled with strengthened technical and financial support, was recommended.
To drive growth and job creation, the committees called for accelerated structural reforms, greater support for small, medium and micro enterprises (SMMEs), scaled up and efficient infrastructure delivery, strengthened capacity at SARS, and improved coordination across government to combat illicit trade and support municipalities.
The committees also stressed the importance of fiscal discipline and accountability, including reducing wasteful expenditure, managing debt risks, strengthening social protection and enhancing transparency and oversight.
In the NCOP, all provinces voted in favour of the adoption of the 2026 Fiscal Framework and Revenue Proposals. In the NA, 227 members voted in favour, 71 voted against, and no Members abstained.
Following Parliament’s approval of the Fiscal Framework and Revenue Proposals, the Houses will now proceed with the consideration and processing of the remaining money Bills: the Division of Revenue Bill and the Appropriation Bill. The finance committees will undertake detailed scrutiny, consult stakeholders where necessary, and make recommendations to both Houses for final approval.
ISSUED BY THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
Enquiries: Moloto Mothapo, Parliament Spokesperson
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