Finance Minister Enoch Godongwana has tabled a medium-term budget that redirects funds to cover some of the government’s most pressing and high-profile commitments, from a global diplomatic event to a lifeline for millions of South Africans.
Presenting the 2025 Medium-Term Budget Policy Statement (MTBPS) in Parliament, the minister announced a series of crucial financial adjustments, including a last-minute R100 million allocation to ensure South Africa is ready to host the G20 Leaders’ Summit in Johannesburg next weekend.
Funding High-Stakes Priorities
The funding for the high-profile international gathering was found by reallocating “declared savings” from other government departments, a move that highlights the fiscal pressure of hosting such a large-scale event.
The MTBPS also confirmed substantial funding for several other key areas:
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Madlanga Commission: The high-stakes inquiry into allegations of corruption within the criminal justice system, led by Judge Mpati Madlanga, has been allocated R147 million to continue its work.
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National Dialogue: The controversial initiative, criticized by some as an expensive “talk shop,” has been granted R132 million.
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2026 Elections: The Electoral Commission (IEC) will receive R1.1 billion to prepare for the upcoming local government elections.
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Parliament Fire Recovery: A significant R2 billion has been channeled towards rebuilding the parts of the Parliamentary complex gutted by the 2022 fire.
Social Grant Lifeline Extended
In a move that will impact millions of households, Minister Godongwana confirmed the extension of the R350 Social Relief of Distress (SRD) grant. The grant will continue for another year, until March 2027.
The minister noted that this extension provides a window to finalize proposals aimed at linking the working-age population to skills development and employment programmes. He also emphasized ongoing efforts by the South African Social Security Agency (SASSA) to eliminate fraud and corruption within the grant system to ensure its long-term sustainability.
Additionally, the budget responds to critical health funding gaps, adding R590 million to provincial health departments to help offset the withdrawal of US PEPFAR funding for HIV/Aids programs.
The MTBPS paints a picture of a treasury carefully balancing immediate social needs, essential state functions, and unavoidable international obligations in a constrained fiscal environment.
