Finance Minister Enoch Godongwana faces his toughest Mid-Term Budget Policy Statement yet on Wednesday, as South Africans buckling under fuel shocks, joblessness and a relentless cost-of-living crisis look to Treasury for relief.
Godongwana will table the MTBPS – the so-called mini-budget – at 2pm in Parliament. Unlike the February Budget, it does not normally introduce major tax or grant changes, but it sets the tone for spending, borrowing and growth over the next three years.
The pressure is mounting. Over the past 12 months fuel prices have surged by more than 40%, driven by renewed conflict in the Middle East and global oil volatility.
Diesel and petrol costs are now feeding directly into food prices, transport fares and municipal services, hitting poor and working-class households hardest.
President Cyril Ramaphosa is expected to attend the sitting, underscoring the political weight of the statement.
The framework will be judged on whether it offers any breathing room, or simply doubles down on austerity. Economists say Godongwana must show how government will stabilise debt without crushing demand, and whether there is space for targeted relief on fuel levies, social protection and job-creating investment.
RISE Mzansi has positioned the MTBPS as a make-or-break moment on the cost of living, arguing Treasury has unexpected revenue that could cushion households.
Spokesperson Mabine Seabe said global pressures are driving fuel inflation.
“Global volatility, from US trade policy to the energy shocks in the Middle East, is driving fuel inflation. High diesel prices continue to hit local supply chains and household budgets hard. A fuel tax windfall exceeding R50-billion could offer short-term breathing room,” Seabe said.
He cautioned that a temporary buffer would not fix deeper weaknesses.
“But it won’t solve the structural problems. Treasury must now rethink its reliance on rigid fuel levies. Middle-class budgets are stretched. Local businesses are stalling, municipalities are buckling.”
ActionSA said the mini-budget must tackle growth, jobs and fuel prices head-on.
MP Alan Beesley said the Finance Minister needs to deliver more than fiscal housekeeping.
“As ActionSA, there are several things that we want the finance minister to cover. These include bold reforms to get the economy going to address the unemployment crisis; concrete plan on how to address illicit trade and increase funding to SARS,” Beesley said.
“But most importantly, we want the finance minister to speak on these record fuel prices that are having a devastating impact on all South Africans and the economy as a whole.”
Opposition demands ahead of Wednesday are split:
The MK Party is pushing for investment-led job creation, saying the focus must be on employment.
“Priority number one is how investment is going to be prioritised to create employment. How are we going to ensure that we create massive job opportunities that are going to grow our GDP?” the party said.
The IFP is calling for a balance between fiscal discipline and social protection.
Chief Whip Nhlanhla Hadebe said on national television that the party expects “a fiscal framework that supports economic growth, job creation, small businesses and greater social protection for vulnerable communities. Of particular importance is increased expenditure towards combating gender-based violence and femicide.”
