National treasury releases people’s guide to 2026/27 budget
Tax revenue, social grant hikes, and job-creation funding top the list as government sets out spending plans for the year ahead.
The national treasury has published its people’s guide to the budget, setting out exactly how government will raise and spend money in the 2026/27 financial year.
Taxes are expected to bring in R2.16-trillion, making up 80.9% of total income. Borrowing will add R324.3b or 12.2%, while non-tax revenue is forecast to contribute R185.1b or 6.9%.
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On the spending side, social development gets the biggest slice at R446.6b, or 16.7% of the budget. Debt-service costs will take R432.4b, equal to 16.2%. Basic education is allocated R358.6b or 13.4%.
Community development receives R294.3b, or 11.0%, health gets R310.4b, or 11.6%, economic development is budgeted R283.9b, or 10.6%, peace and security R274.6b, or 10.3%, and post-school education and training R155.8b, or 5.8%.
Permanent social grants will increase above inflation.
The old age grant rises from R2 315 to R2 400 a month, the war veterans grant from R2 335 to R2 420, the disability grant from R2 315 to R2 400, the foster care grant from R1 250 to R1 295, and the care dependency grant from R2 315 to R2 400, while the child support grant goes up from R560 to R580 and the grant-in-aid from R560 to R580.
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The national treasury says 18 million people will be receiving social grants by March 2029. Real GDP growth of 1.6% is expected in 2026.
Over the medium term, 60% of government expenditure will go towards community development, jobs, health, education, and social protection.
Additional funding includes R4.1b for the presidential employment programme, R930b over the next three years for basic services, housing, and public transport, as well as spatial transformation and urban development, and R893.6b over the medium term for manufacturing, small enterprises, and public employment programmes, to stimulate economic growth and employment.
The national student financial aid scheme will spend R54.3b in 2026/27.
Debt-service costs, as a percentage of revenue, are projected to reach 21.3% in 2024/25 and 2025/26, before easing to 20.2% by 2028/29.
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