Godongwana unveils 2026 budget, increases social grants and allocations for key services

CAPE TOWN, Feb 25  – Finance Minister Enoch Godongwana announced a comprehensive budget for 2026, highlighting significant allocations for social grants and essential services aimed at bolstering economic recovery and supporting vulnerable communities.

In his budget speech, Godongwana revealed that social grants will receive R292.8 billion, with monthly increases set for various groups.

The old age, disability, and care dependency grants will rise by R80 to R2,400 in April 2026, while the war veterans grant will also increase by R80 to R2,420.

The foster care grant will see incremental increases to R1,290 in April and R1,300 in October, and the child support grant will rise by R20 to R580.

The budget also allocates R268.2 billion for peace and security, a figure projected to increase to R291.2 billion by 2028/29. This funding will support initiatives against illegal mining and gangsterism, with specific allocations of R2.7 billion for defense operations and R1 billion each for the police service and the South African National Defence Force.

Godongwana emphasized that the budget reflects a commitment to improving access to basic services, with R86.9 billion earmarked for local government to support free basic services for 11.2 million households.

The budget aims to address the operational challenges faced by municipalities, with a focus on enhancing financial management and service delivery.

In infrastructure, the government plans to invest over R1 trillion in public-sector infrastructure over the medium term, including R577.4 billion from state-owned companies and R205.7 billion from municipalities.

Key projects include upgrades to transport, water, and energy systems, which are essential for economic growth.

The finance minister also announced plans to increase the fuel levy in line with inflation, with the general fuel levy rising by 9 cents per litre for petrol and 8 cents for diesel, while the carbon fuel levy will increase by 5 cents for petrol and 6 cents for diesel.

Enoch Godongwana’s 2026 budget prioritises social grants and essential services, with significant funding for peace, security, and infrastructure to drive economic recovery.

Godongwana concluded by reaffirming the government commitment to prudent fiscal management and inclusive growth, aiming to restore public confidence and stimulate economic development across South Africa.