The Alternative Information & Development Centre (AIDC) made both written and oral submissions to the standing and select committees on finance on the fiscal framework and revenue proposals. We contend that the proposed fiscal framework for the 2026 Budget risks exacerbating poverty and unemployment in South Africa, which is the most unequal country in the world.
At its core, a national budget involves making difficult trade-offs, and the 2026 Budget clearly reflects these choices. With two-thirds of the population living in poverty and nearly half unemployed, the potential benefits of increased investor confidence seem distant to those excluded from the formal economy. While the government provides tax relief to the middle class and elite, the main budget’s non-interest expenditure is set to decline by 1% in real terms. This proposed fiscal framework is likely to worsen poverty and unemployment.
In this submission, we outline key issues related to economic growth, debt, spending, and job creation. We also offer alternative recommendations to demonstrate that it is both fiscally responsible and morally necessary to develop a progressive budget in the world’s most unequal country.
See our full submission below.
