MTBPS 2025
Cape Town, Western Cape – Finance Minister Enoch Godongwana has set aside R100 million to fund South Africa’s hosting of the G20 Summit in 2025, drawing from declared savings by other government departments.
The allocation was revealed during his Medium-Term Budget Policy Statement (MTBPS) presentation at the National Assembly on 12 November 2025. This forms part of a broader R22.8 billion in additional spending adjustments for the current fiscal year, aimed at addressing urgent priorities like disaster relief, electoral preparations, and social support.
The minister also confirmed the extension of the R350 Social Relief of Distress (SRD) grant until March 2027, providing continued aid to millions amid economic challenges.
Godongwana’s address highlighted a cautiously optimistic outlook, with improved revenue collections enabling these injections without immediate tax hikes. However, he deferred decisions on potential tax relief to the 2026 Budget, keeping South Africans waiting for clarity on fiscal pressures.
Key Allocations in the MTBPS Adjustments
The R100 million for the G20 Summit at the Nasrec Expo Centre in Johannesburg will cover logistics and preparations for the high-profile event, which South Africa will host for the first time. This funding is part of R22.8 billion in total adjustments, including:
- R29.8 billion for social grants, with R18.2 billion specifically for the SRD grant extension to support vulnerable households.
- R10 billion for the Land Bank to aid agricultural recovery and food security.
- R147 million for the Madlanga inquiry into police corruption, ensuring ongoing investigations.
- R2 billion towards rebuilding Parliament after the 2022 fire.
- R1 billion to the Independent Electoral Commission (IEC) for the 2026 local government elections.
These measures address immediate needs while aligning with long-term goals like economic stability and service delivery. Godongwana emphasised that the improved revenue of R19.7 billion, driven by stronger VAT collections from household spending and corporate taxes, allowed for these forward shifts without derailing deficit targets.
Extension of the R350 SRD Grant and Social Support
The decision to extend the R350 SRD grant until March 2027 provides relief to over 10 million beneficiaries, costing an additional R18.2 billion. Introduced during the Covid-19 pandemic, the grant has been a lifeline for the unemployed and poor. Godongwana noted that this extension buys time to develop a more sustainable basic income support system, amid calls from civil society for permanent aid.
Critics, however, argue the amount remains too low to combat poverty effectively, with inflation eroding its value. The minister assured that reforms are underway to improve targeting and efficiency, potentially linking it to job creation programmes.
Revenue Performance and Fiscal Outlook
Godongwana reported better-than-expected tax revenue, revising the 2025/26 estimate upward by R22 billion. This surplus stems from resilient consumer spending boosting VAT, lower refunds, and improved corporate profits. Despite this, the budget deficit is projected at 4.3% of GDP, with debt stabilisation targeted for 2025/26.
No new tax measures were announced, but a proposed R20 billion increase for 2026/27 remains under review, pending SARS performance. The minister highlighted a new 3% inflation target to anchor stability, potentially lowering borrowing costs.
Tackling Illicit Trade and Economic Risks
The MTBPS addressed losses from illegal activities, with R40 billion in excise revenue lost to the cigarette black market since 2020. Godongwana outlined crackdowns, including SARS suspending three non-compliant tobacco licences in the last six months. Collaboration with the Financial Intelligence Centre has identified illicit markets in tobacco, precious metals, fuel, and procurement fraud.
He called on customs officials to prevent tax evasion and protect consumers from dangerous products. This initiative aims to recover revenue and support legitimate businesses.
Godongwana warned of global risks like geopolitical tensions affecting commodity prices, but expressed confidence in domestic reforms to drive growth.
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