Civil society has consistently advocated for ways to expand public spending without deepening debt or burdening the poor. Now, the challenge is political will. In such a volatile economic climate, leaders must seize this moment to craft a Budget that strengthens the delivery of public education and healthcare services, prioritises the most vulnerable who depend on these services, and builds a capable state.

The postponement of Budget 2025 has been a stark wake-up call for South Africa's fiscal policy and its role in alleviating hardship. Civil society has long criticised sluggish growth, soaring debt costs, and dwindling funds for essential sectors like education and health.

In response, the Budget-that-never-was proposed much-needed spending increases -- the largest since Covid-19 -- but controversially sought to fund them through a VAT hike. This regressive move sparked a backlash, forcing the Treasury back to the drawing board to explore alternative revenue-raising mechanisms and ensure more effective, high-quality public spending.

Civil society has consistently advocated for ways to expand public spending without deepening debt or burdening the poor. Now, the challenge is political will. In such a volatile economic climate, leaders must seize this moment to craft a Budget that strengthens the delivery of public education and healthcare services, prioritises the most vulnerable who depend on these services, and builds a capable state: one that generates, allocates, and spends revenue fairly and effectively for all.

Shift in education and health spending

South Africa's economy has stagnated for years, with weak growth, limited job creation, and persistent poverty deepening inequality. In response, the government pursued aggressive fiscal consolidation that...