Godongwana's Great Escape: A Budget of Dodged Taxes, Dished-Out Rands, and a Date with the Loo Police

It’s an incredible thing, to be locked in a room and handed the country's financial future in a stack of papers thick enough to stop a door. As a journalist at the 2026 Budget lock-up, the first order of business isn't insight; it's surrender. You’re ushered through the historic, fire-scarred halls of Parliament, a place that feels like it holds the ghosts of budgets past, only to have your most prized possession—your phone—confiscated and sealed in a brown envelope. Oh, the irony of a brown envelope in a government building! Let's not wander too far down that path.

You're then led to a committee room, your "one-man office for the day," where you're taken into the confidence of the Minister of Finance. The privilege is immense, but so is the pressure. And the security. Need the loo? You get a police escort. They know that in 2026, asking a human to be disconnected from the socials is a big ask. They’re not just guarding state secrets; they’re preventing a full-blown millennial meltdown.

I walked in ready to make a bet. If Minister Enoch Godongwana hit all the wrong notes, he’d owe me an expensive drink. If he played a symphony, I’d send him a bottle of Bells. Of course, by the end of the day, that Bells would be more expensive thanks to him, so either way, an expensive drink it would be. Let's see who's buying.

The R20 Billion Vanishing Act

Let's get straight to the headline act. Remember last year's nail-biter? The talk of a 17% VAT, the multiple speech drafts? It all culminated in a provisional plan to sting taxpayers for an extra R20 billion in 2026 to fund our nation's ever-growing wish list. We all braced for impact.

And then, poof! It was gone. In a move that felt like a collective national exhale, Minister Godongwana announced that the R20 billion tax increase was officially withdrawn. Why the sudden generosity? According to the official 2026 Budget Speech, gross tax revenue for 2025/26 came in R21.3 billion higher than expected, thanks to better-than-anticipated VAT and corporate tax collections. The improving fiscal position gave Treasury enough wiggle room to scrap the hike "without putting fiscal sustainability or economic activity at risk."

"The chase to the end... the last push and the race of a milestone."

This wasn't just a lucky break. It was the result of a high-stakes chase. SARS was tasked with collecting a mountain of outstanding debt. While they fell short of their ambitious R95 billion target—collecting R79.4 billion by January 31st—their relentless efforts, including hiring new collectors and collaborating with banks, clearly helped bolster the state's coffers. So, while the taxman didn't win the whole pot, he won enough for the rest of us to get a pass. For now. With his ex-boss, Commissioner Edward Kieswetter, taking his final bow, it was a bittersweet victory lap to witness.

What's In It For Us? (Besides Not Being Poorer)

With the tax bogeyman banished, the Minister actually had some treats to hand out. It seems the government has decided that if we’re going to get through this economy, we might as well do it with a little more cash in our pockets.

Your Wallet's New Best Friends:

• Bracket Creep Relief: Personal income tax brackets and rebates are being adjusted fully for inflation. This is Treasury's way of saying, "Sorry inflation tried to steal your raise, here's a little something to make up for it."

• Supercharged Savings: To encourage us to save, the tax-free annual investment limit is being boosted from R36,000 to R46,000. The limit for retirement fund deductions also gets a hefty raise from R350,000 to R430,000.

• Small Business Boost: For the entrepreneurs holding our economy together with grit and glue, the compulsory VAT registration threshold is jumping from R1 million to R2.3 million. A small business owner named Renette Oosthuizen literally asked for this in her budget tip, and the Minister delivered. Who says they don't listen?

Of course, it wasn't all good news for our vices. The "sin taxes" did their annual march upwards. A pack of 20 cigarettes will cost you an extra 77 cents, and a 750ml bottle of spirits will set you back another R3.20. Even your morning commute gets a little pricier, with fuel levies rising by a total of 21 cents for petrol and diesel.

For My Gran: The SASSA Update

I have a vivid memory of sitting with my late grandmother, watching the budget speech with the intensity of a World Cup final. She’d hang on every word, waiting for the Minister—it was Trevor Manuel back then—to get to the part that mattered most: her old age grant. Today, in her memory, I listened just as intently.

Minister Godongwana didn't disappoint. With social grants allocated a massive R292.8 billion, there are increases across the board:

• The old age, disability, and care dependency grants will rise by R80 to R2,400 in April 2026.

• The child support grant increases by R20 to R580.

It’s a lifeline for millions, and a reminder of the deeply redistributive nature of our budget. The speech also noted that SASSA is cracking down on fraud, having already terminated nearly 35,000 incorrect or fraudulent grants. A necessary, if tough, measure to ensure the money reaches those who truly need it.

Tackling the Big Leaks: Water and Infrastructure

My pre-budget curiosity was piqued by the country's creaking infrastructure, especially our looming water crisis. It's one thing to talk about fiscal flows; it's another when the taps are running dry. The Minister didn't just waltz past this issue.

He pointed a direct finger at the problem: municipalities using revenue from services like water for ";unrelated functions." He cited Johannesburg, which collects R11.9 billion in water revenue but allocates only R1.3 billion back to Joburg Water for capital expenditure, contributing to a staggering R64 billion maintenance backlog.

The solution? A R27.7 billion ";performance-linked reform for metro trading services." This is a fancy way of saying, ";If you don't use the money you collect for water to fix the water system, we're going to cut your budget." It's a move to force municipalities to ring-fence revenue and reinvest it where it's generated. It’s the financial equivalent of telling a child they can only have dessert if they finish their vegetables. It’s tough love, but it’s desperately needed.

This is part of a larger R1 trillion public-sector infrastructure push over the medium term, aimed at everything from fixing roads with SANRAL to getting PRASA's trains back on track and, crucially, unlocking private investment to build the country we need.

The Final Verdict

As the lock-up ended and the embargo lifted, the doors opened and we were released back into the world, blinking in the Cape Town sun, our phones buzzing back to life. The country's financial blueprint was now public, a complex tapestry of trade-offs, tough choices, and glimmers of hope.

The 2026 Budget feels like a turning point. After years of crisis management—State Capture, junk status, a pandemic—the language has shifted from panicked firefighting to disciplined rebuilding. Debt is set to stabilize for the first time in 17 years. We're off the FATF grey list. We even got a credit rating upgrade.

So, who's buying the drink? Tonight, I think I'll buy my own. This budget wasn't a symphony, but it wasn't a cacophony either. It was a solid, pragmatic performance that dodged the biggest bullet (the tax hike), gave a little back to the people, and laid down some tough rules for fixing the broken parts of our state. It’s a plan that says we’re tired of just surviving; we’re ready to start building again. And for that, I’ll raise a glass—even if it is slightly more expensive than it was yesterday.

© 2026 Financial Insight Africa. All rights reserved.

Information sourced from the 2026 Budget Speech delivered by the Minister of Finance.

Reference

[1]2026 Budget Speech https://api.skywork.ai/chat/chat/upload_file?file_id=2026646084595871744