Budget Speech 2026 > Introduction

Honourable Members, we have reached an important turning point in the management of our public finances.

Five years ago, the outlook was stark.

State Capture had hollowed out critical institutions and weakened state owned entities.

South Africa had been downgraded to junk status by the last of the three major credit rating agencies in 2020.

The devastation of the coronavirus pandemic coupled with the Russia-Ukraine conflict had dealt a blow to global growth.

And in 2023, the Financial Action Task Force had placed South Africa on its grey list.

The warning lights were flashing.

Public finances were under severe strain and growth had stalled.

Faced with this crisis, we chose not to be defined by it. Instead, we turned it into a catalyst for change.

We committed to a clear reform agenda and a disciplined fiscal strategy built on three principles: stabilise debt, invest in infrastructure and spend better.

Today, that commitment has delivered tangible results.

For the first time in 17 years, debt will stabilise and it will continue to fall in the coming years.

The budget deficit has narrowed significantly, and debt-service costs are also falling.

The world has taken notice:

•	South Africa has been removed from the FATF grey list;

•	We secured our first credit rating upgrade in 16 years;

•	And borrowing costs have eased, creating space for growth and development.

These are signals of restored credibility. Of renewed resilience. And of a nation regaining its footing.

The lesson is a simple but powerful one: steady structural reform and responsible public finances are the bedrock of a prosperous and more inclusive South Africa.