There have been mixed reactions from political parties to the Medium-Term Budget Policy Statement (MTBPS) delivered by Finance Minister Enoch Godongwana on Wednesday afternoon.

Amongst others, Godongwana announced relief on fuel levies, saying that the diesel levy will drop by R3 per litre and the petrol levy will drop by R1.50 per litre on 4 November, before tapering down in December.

Chairperson of Parliament’s Standing Committee on Finance Joe Maswanganyi says these measures address many issues that can bring relief at local government level.

“It will go a long way in dealing with the cost of living because everybody is concerned about the cost of living. The price of food, the price of transport is very high because of the oil prices and many, many other measures that he has mentioned in local government. The issue of El Nino is a reality. How do we deal with it? He has spoken about monies that will be allocated to try to alleviate the challenges that will come with El Nino, more especially in the agricultural sector.”

ANC Secretary-General Fikile Mbalula says the budget is aimed at protecting South Africans from increases in food and transport costs, as well as the cost of doing business.

“In a hard year, the minister has done the thing that a budget does not always manage to do. He has reached into the pocket of the working family and left a little more there. R10 billion is handed back at the fuel pump in the busiest travelling weeks of the year. Every grant is protected and the social wage is growing.”

Economic growth, job creation

The Freedom Front Plus (FF Plus) says the MTBPS is largely positive, given the economic turmoil the country is facing.

Government announced a downward revision of its economic growth forecast for 2026 to 1.2% from 1.6% projected in the February budget.

Growth is expected to reach 2% by 2029.

FF Plus Chief Whip Wouter Wessels says while there are positives like a tax windfall of R17-billion, there are some matters that will require increased oversight.

“It is worrying that we are increasing expenditure, but it is also necessary functions where expenditure is increased. But now it’s all about how that money will be spent…will there be corruption allowed and will there be discipline? And will that money be spent in terms of value for money so that there’s service delivery and infrastructure development so that we can get economic growth?”

Meanwhile, the African Christian Democratic Party (ACDP) has bemoaned the downward adjustment of the country’s economic growth.

ACDP Chief Whip Steve Swart says this does not bode well for much needed job creation.

“Sadly, our economic growth is not high enough. It’s been downgraded to 1.2%, and this is not enough for job creation in our country. And so, we really believe that there’s far more needs to be done in focusing on infrastructure expenditure. And yes, the minister did emphasise that as opposed to consumer spending, which is on salaries.”

Reiterating the ACDP, ActionSA MP Athol Trollip says the downward projection of the country’s economic growth means non-delivery of the GNU’s promise of job creation.

“Global economic growth is at 3.5% and Sub-Saharan growth is at 4.3% – and our illicit economy is growing at 6% – so it undermines our economy, which means that we won’t even be able to absorb the people who are writing matric this year into the job market. So, our unemployment queues get longer and longer in this country. And that’s the one thing that the GNU said that they would address was economic growth. And they haven’t been able to do that. This government cannot get the fundamentals right of growing our economy.”

Investment infrastructure

Build One South Africa (BOSA) leader Dr Mmusi Maimane says investment in infrastructure at municipal level must go hand in hand with capabilities on the ground.

Government has committed to spending 5.20% to infrastructure investment – which is the fastest growing expenditure item on the budget.

Maimane says the focus should also be on the ability to do business easier at local government level.

“It’s important when I’ve been warning continuously to say, when you do infrastructure spending and partnerships, we need to make sure municipalities are capable of it. We need to invest in rail so that it’s easier for people to get to and from work. And more than anything, we need to ensure that capital assets, which are not only on infrastructure, but making the ease of business possible, that people can be able to start businesses, employ more people so that we can create an economy that works. That must be the focus in the medium term.”

SABC News Economics Editor Tshepo Mongoai unpacks the Medium-Term Budget Policy Statement: