27/02/2026
Student Voices on the 2026 Budget Speech,
Our Economics students share their perspectives on key policy themes raised in this year’s Budget Speech.
🎓 Zamantusi Mngadi reflects on excise duties and social grants:
“Excise duties on to***co products could potentially be increased further, given the negative externalities associated with to***co consumption. Demand appears relatively inelastic, which may contribute to increased government revenue to support public spending priorities or debt stabilization.
At the same time, social grants remain an important policy tool. While there are differing views about their long-term effects, it is important to recognize the role they play in supporting households facing involuntary unemployment and rising living costs.”
🎓 Ntsika Mboxo shares a broader macroeconomic perspective:
“After paying close attention to the 2026 Budget Speech, I would describe it as cautiously optimistic, with a focus on debt stabilization and modest growth recovery. Key highlights include the tax relief measures, increased infrastructure spending, and prioritized social grants. The withdrawal of the R20 billion tax increase and inflation-linked adjustments to personal income tax brackets are welcome developments.
However, more could have been done to address structural issues such as unemployment and inequality. The projected growth rate of 1.6% for 2026 appears modest relative to the country’s potential.
Sustained reforms in energy, logistics, and strengthened public–private partnerships will be critical in achieving higher growth. If implemented effectively, these reforms could boost investor confidence and support long-term economic expansion.”
At the School of Economics, we encourage critical engagement, balanced analysis, and evidence-based discussion on real-world policy issues.
🎓 Mphotsaone Mathole highlights both the risks and strengths of the 2026 Budget:
“The fiscal framework appears increasingly dependent on factors outside the Treasury’s direct control, such as stable electricity supply, logistics performance, and monetary policy decisions. This creates vulnerability, as unexpected shocks could undermine revenue projections and debt stabilization efforts.
There is also concern that rising interest payments and relatively slow growth in capital expenditure may limit investment in future economic growth.
On the positive side, the budget prioritizes fiscal discipline, debt stabilization, and continued support for vulnerable households. The emphasis on transparency and responsible financial management is a noteworthy strength.
Overall, the 2026 Budget reads more as a risk-management framework than a strong growth strategy.”