South Africa’s 2026 Budget, presented by Finance Minister Enoch Godongwana, has received positive reactions from the Democratic Alliance (DA), with Dr. Mark Burke, the DA’s spokesperson for finance, highlighting several key policy achievements that align with the party’s positions.
In his reaction to the budget speech, Dr. Mark Burke described the fiscal framework as moving in the right direction. He emphasized that the budget places South Africans at the center by avoiding any increases in personal income tax or value-added tax (VAT). For the first time in three years, taxpayers benefit from no hikes in these major taxes.
A significant win highlighted by Dr. Burke is the relief from bracket creep. This adjustment ensures that individuals receiving salary increases from their employers do not lose the benefit by shifting into higher tax brackets and paying more tax on their income overall.
Dr. Burke also praised the increase in the VAT registration threshold, raised for the first time in nearly 20 years from R1 million to R2.3 million. This change aims to ease the administrative burden on small and emerging businesses. It forms part of a broader package of 22 limits and thresholds that were adjusted and announced in the budget, providing further support for small enterprises and entrepreneurs.
Overall, Dr. Burke viewed the budget as reflecting the dynamics of a coalition government rather than a traditional ANC-led approach. He noted that it incorporates several DA policy wins and signals a shift toward more collaborative fiscal decision-making.
However, Dr. Burke expressed ongoing concerns regarding a specific allocation in the special appropriation bill directed to the Passenger Rail Agency of South Africa (PRASA) and its division responsible for the renewal of rolling stock. He described that organization and division as riddled with corruption, stating that the relevant line item requires further scrutiny and raises serious concerns.
Dr. Mark Burke’s comments underscore a mix of optimism about tax relief and caution over potential mismanagement in state-owned entities, as South Africa navigates its fiscal priorities under the current government of national unity.