-
Minister of Finance Mr Enoch Godongwana
Finance Minister Enoch Godongwana is expected to steer away from major tax changes when he presents the Medium Term Budget Policy Statement on Wednesday, 12 November 2025.
The Medium Term Budget Policy Statement outlines government priorities, economic forecasts, and updated spending and revenue projections for the next three years.
The minister will provide critical updates on revenue and expenditure, with economists saying current data point to a wider-than-budgeted fiscal deficit for the 2025/26 year so far.
Performance of the local economy remains weak, with growth expected at 1.2% for this year, rising to 1.9% by 2027.
Recent Reserve Bank data indicate that gross tax revenue increased by 6.5% compared to the same period in the previous fiscal year.
Tax revenue growth was supported by strong performance in corporate income tax, personal income tax and value-added tax.
Expenditure slowed by 4% over the same period, slightly down from 4.3% in the previous fiscal year.
Economists expect government debt to continue to grow, but to stabilise over the next three years.
WATCH | There’s speculation that Finance Minister Enoch Godongwana may make a formal announcement around a new inflation target at the upcoming Medium-Term Budget Policy Statement on Wednesday. pic.twitter.com/83BzXCcs92
— SABC News (@SABCNews) November 10, 2025
Tax expert at Forvis Mazars Tretius Troost says it will be interesting to see if SARS will be able to demonstrate how it has fared in tax collection after the National Treasury provided additional funding to the revenue collection agency to strengthen tax collection measures.
While raising the value-added tax remains a political hot potato, National Treasury has earlier mentioned that the issue cannot be off the table forever.
Troost says whether or not to bring the VAT debate back on the table will depend on the revenue that SARS is able to collect.
He says that should there be a large budget deficit and SARS is not able to meet targets, Godongwana may be forced to look at various measures to raise revenue.
COSATU says the government must use the Medium Term Budget Policy Statement and the upcoming 2026 Budget to restore hope for struggling workers and a fatigued society, while boosting the economy toward the 3% growth needed to place South Africa on a path of inclusive development and renewal.
#COSATU declares: @GovernmentZA needs to exploit the #MTBPS and the pending 2026 Budget to give hope to struggling workers and a weary society, and to lift the economy to the 3% economic growth needed to set SA firmly on the path to inclusive growth and renewal. @MorningLiveSABC pic.twitter.com/euk04zR1hh
— @COSATU Today (@_cosatu) November 12, 2025
Opposition parties are also anticipating the 2025 Medium Term Budget Policy Statement to be delivered by the minister.
[WATCH 📽️]#RISEMzansi National Leader and SCOPA Chairperson @SongezoZibi explains the Medium-Term Budget Policy Statement (MTBPS), also known as the mini budget, which outlines government spending priorities and economic projections for the next three years.#RISEInParliament pic.twitter.com/nShEo6FhOo
— RISE Mzansi (@Rise_Mzansi) November 11, 2025
RELATED VIDEO | GODONGWANA TO PRESENT 2025 MTBPS AMID SKEPTICISM
