ANC Hails Focus on Local Government in Godongwana’s 2026 Budget – Bhengu-Mtsiri

Cape Town – The African National Congress has welcomed the strong emphasis on bolstering local government in Finance Minister Enoch Godongwana’s 2026 Budget Speech, with party spokesperson Mahlengi Bhengu-Mtsiri calling it one of the standout positives from the announcement. Delivered to Parliament on 25 February 2026, the budget lays out plans to pump billions into municipalities to fix crumbling services like water, roads, and electricity, giving hope to communities long frustrated by poor delivery. For everyday South Africans struggling with potholes and blackouts in their neighbourhoods, this focus signals a real push to make towns and cities work better, though experts warn that strict conditions on spending will be key to seeing actual change.

ANC’s Positive Take on the Budget

Bhengu-Mtsiri praised the allocations as a step towards stronger grassroots governance, saying the focus on local government is one of the positive developments in the 2026 Budget Speech. She highlighted how the funds aim to tackle the basics that affect people’s daily lives, from clean water to safe streets. The ANC sees this as aligning with their priorities of building capable municipalities that can deliver for the poor and working class. In her view, it shows the government’s commitment to turning around underperforming areas without letting past mismanagement continue.

This response comes amid broader party support for the budget’s overall direction, which balances fiscal caution with social spending. ANC leaders have echoed that the plan avoids harsh tax hikes on ordinary folk while channelling money where it is needed most. For party members and supporters, it reinforces their role in steering the economy towards growth that benefits all, especially after tough years of slow recovery.

Key Allocations for Local Government

At the heart of the budget is a massive R86.9 billion injection for local governments over the next three years, aimed at improving basic services like water supply, sanitation, and electricity. This includes R14.8 billion for municipal infrastructure grants to repair and build essential facilities, and R4.2 billion for informal settlements upgrades to bring decent housing and amenities to thousands of families living in shacks. Another R3.2 billion goes towards community development workers, who help bridge the gap between councils and residents by addressing complaints and speeding up fixes.

Godongwana made it clear that this money comes with strings attached—municipalities must prove they can spend it wisely, or face cuts. Underperforming ones could lose out if they fail to meet targets like fixing leaks or collecting bills on time. For someone trying to understand this, it means the government is not just handing over cash; it is watching how it is used to avoid waste, like in past scandals where funds vanished without visible improvements. This conditional approach draws from lessons learned, ensuring that rural towns and urban townships see real upgrades, from better streetlights to reliable refuse collection.

Broader Budget Wins for Communities

Beyond local government, the budget boosts social grants by R75.5 billion over three years, with old-age pensions rising to R2 240 a month by April 2027, and child support grants hitting R550. This helps families cope with high food and fuel costs, tying into the ANC’s push for poverty relief. Godongwana also announced no increases in personal income tax or VAT, putting extra money back in workers’ pockets through inflation-adjusted brackets worth R15 billion in relief.

On the economic front, the minister projected growth at 1.5% for 2026, driven by investments in energy and transport. This includes R5.8 billion for Prasa to modernise trains, easing commutes for millions who rely on public transport. Debt stabilisation at 78.9% of GDP marks a turning point after 17 years of rises, allowing more spending on services without borrowing spirals. For small towns, this means potential job creation through infrastructure projects, like road repairs that employ locals and boost trade.

Challenges and Criticisms Ahead

While the ANC hails the local focus, not everyone is convinced. Some opposition voices argue the allocations fall short of what is needed to fix decades of neglect, with many municipalities drowning in debt and unable to pay suppliers. Critics point out that without rooting out corruption, the funds could end up misused, leaving communities in the dark—literally, with ongoing power issues. Godongwana addressed this by tying grants to performance, warning that failing councils might see interventions or fund cuts.

In rural Limpopo or Eastern Cape, where services are often worst, residents hope this budget delivers on promises. Past budgets have promised turnarounds, but delivery has lagged due to skills shortages and political infighting. The ANC’s Bhengu-Mtsiri counters that this plan builds on reforms like debt relief for Eskom, freeing up municipal cash for essentials. She urges patience, saying real change takes time but starts with targeted support like this.

Economic Outlook and Long-Term Benefits

Godongwana’s speech painted an optimistic picture, with revenues up thanks to better tax collection and a stronger rand. This allows for investments in peace and security, rising to R291.2 billion by 2028/29, including more cops on the streets. For local governments, linking funds to outcomes could mean cleaner audits and better services, attracting businesses and creating jobs. Over time, this could lift household incomes and reduce reliance on grants.

For young people in townships, the budget’s push for skills training and youth employment schemes offers a lifeline. Combined with local upgrades, it aims to build vibrant communities where kids have playgrounds, schools have water, and parents have work nearby. The ANC sees this as part of their renewal agenda, fixing past mistakes while driving inclusive growth.

A Budget for the People?

In wrapping up, Bhengu-Mtsiri’s praise reflects the ANC’s view that Godongwana struck the right balance—steadying finances without hurting the vulnerable. For South Africans, the proof will be in the puddles: Will potholes get filled and taps run clear? As Parliament debates the bills, communities wait to see if this focus on local government turns words into action, bringing a brighter future to doorsteps across the nation.

🔴Central News Special Edition | Issue 129: Download the Latest Print and E-Edition | Ngwathe Citizen Forum: Council Now Would Undermine Progress🔴

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