African Transformation Movement (ATM) leader Vuyolwethu Zungula has sharply criticized South Africa’s 2026 national budget, describing it as a political campaign tool for the African National Congress (ANC) in an election year rather than a serious plan to address the country’s deep-rooted challenges.
In an interview following Finance Minister Enoch Godongwana’s delivery of the budget speech on February 25, 2026, Zungula expressed disappointment with the fiscal framework. He argued that the budget essentially served as ANC campaigning, noting that it comes in an election year and follows a pattern seen in previous election periods.
Zungula highlighted the inconsistency in fiscal policy over the past year. He pointed out that last year’s budget faced major controversy due to a proposed VAT increase, which contributed to its postponement. Yet, less than 12 months later, the new 2026 budget introduces no significant new revenue streams or measures to boost income, raising questions about the necessity of last year’s VAT hike.
“The minister today basically campaigned for the ANC,” Zungula stated. “You’ll recall that it’s an election year… last year there was this big issue because of the VAT increase. That is why the budget had to be postponed. Now less than 12 months later there’s a new budget that has been tabled without anything new when it comes to increasing revenue.”
He further questioned the rationale behind last year’s push for additional revenue through VAT if no comparable measures appear in the current budget.
Zungula also observed a recurring trend in election-year budgets, where they adopt a certain posture—often more restrained or populist—only to shift afterward. He referenced the 2025 budget, which followed the 2024 elections and immediately sought increases in certain areas.
The ATM leader emphasized that South Africa’s core problems remain structural, including persistent poverty and high unemployment. He argued that the budget’s approach has stayed largely unchanged over the past decade, relying primarily on inflation-linked adjustments to social grants and allocations rather than bold interventions.
“Inflation increase in terms of grants… does not do anything when it comes to dealing with the structural problems that we have in the country,” Zungula said.
The 2026 budget, tabled amid improved fiscal indicators such as a narrowing deficit (projected to fall from 4.5% of GDP in 2025/26 to 3.1% by 2028/29) and debt stabilization, includes tax relief measures like full inflation adjustment for personal income tax brackets and the withdrawal of a previously planned R20 billion tax increase. It maintains focus on social spending, with grants seeing modest increases (e.g., old-age grant rising by R80 to R2,400).
However, Zungula maintained that these incremental changes fail to tackle the underlying issues plaguing the economy and society.
His comments reflect broader opposition skepticism toward the government’s fiscal strategy, even as the budget highlights progress in revenue collection and debt management following stronger-than-expected performance in 2025/26.