THE Medium-Term Budget Policy Statement (MTBPS) has received positive reaction from political parties and economists.
The DA said there's much to like about the MTBPS tabled by Finance Minister Enoch Godongwana on Wednesday, 12 November.
DA MP Dr Mark Burke said: "For 15 years, the DA has been championing the lowering of government debt. Finally, this has been achieved and debt will peak this year."
A deficit that's smaller than predicted in May and debt to GDP which is stabilising this year and then predicted to come down as a share of the economy for the first time since 2008.
"After 15 years of reckless borrowing under ANC majorities, this government, with the DA inside, is finally committed to stopping the debt spiral," he said.
ActionSA said its call for additional funding for the South African Revenue Service (SARS), rather than taxing ordinary South Africans through a Value Added Tax (VAT) hike, has been vindicated.
"From day one, ActionSA has been the leading voice in Parliament demanding that SARS be properly resourced to rebuild capacity and close the R800 billion tax gap created by years of underfunding. It was ActionSA that first fought to ensure that SARS received more funding," he said.
"SARS's improved revenue collection is therefore not only a victory for ActionSA, but for all South Africans who deserve a government that manages their money efficiently before reaching for higher taxes."
ActionSA welcomed Godongwana's renewed commitment to tackling illicit trade which is denying the fiscus billions of rands.
GOOD Party secretary-general Brett Herron said Mzansi's economy is no longer in free fall.
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He said that the national debt is expected to stabilise at 77,9% after nearly 20 years of accumulation, with the reduction in the inflation target being good news for investors and struggling households.
"The 1,2% economic growth rate, forecast to rise to 1,8% in three years, is, however, much too slow to meaningfully address poverty and inequality in the short to medium term. And another SOE bailout, this time for Denel, inspires little confidence that systemic inefficiencies will ever be addressed," he said.
Chief economist at Aluma Capital, Frederick Mitchell, said one of the most notable highlights is South Africa's return to fiscal surplus after more than a decade.
He said the achievement is a testament to disciplined expenditure control, improved tax collection, and higher revenue from both efficient SARS operations and economic activity.
"As revenue for the first half of the fiscal year reached R924,7 billion, up 9,3% from the previous year, the government has been able to bolster its fiscal position, with debt-to-GDP marginally increasing from 77,4% for the 2025/26 fiscal year projected in May 2025 to 77,9% in the Medium-Term Budget delivered on Wednesday."
He pointed out that another historic move announced in the MTBPS is the lowering of the country's inflation target to 3%, the first change in 25 years.
"This decision aligns with the Reserve Bank's goal of anchoring inflation expectations and maintaining macroeconomic stability. A tighter inflation target helps to sustain lower interest rates, making borrowing cheaper for households and businesses alike, fostering investment and job creation," said Mitchell.
