KwaZulu-Natal MEC for Finance Francois Rodgers has described the 2026 National Budget as a critical step towards restoring South Africa's financial credibility.

Presenting the 2026 Budget Speech in Parliament on Wednesday, Finance Minister Enoch Godongwana announced that public debt is projected to stabilise at 78.9% of Gross Domestic Product (GDP) in 2025/26 before declining over the medium-term.

READ | Finance Minister Enoch Godongwana: 2026 Budget Speech

Follow us on WhatsApp | LinkedIn for the latest headlines

The budget deficit is expected to narrow to 4.5% of GDP, with further reductions projected to decline to 2.9% in 2028/29.

Rodgers welcomed the budget's strong emphasis on fiscal discipline and debt stabilisation.

"It is encouraging that the country is taking debt seriously. Every rand saved on interest is a rand that can be redirected to critical service delivery," Rodgers said.

Stabilising public finances, he said, is essential for the protection of future generations and creating an environment conducive to economic growth.

The MEC also welcomed targeted tax relief measures aimed at supporting small businesses. These include an increase in the VAT registration threshold from R1 million to R2.3 million, as well as capital gains tax relief that raises the Capital Gains Tax (CGT) exemption on the sale of a small business from R1.8 million to R2.7 million.

However, Rodgers expressed concern that the budget offers limited relief for provincial frontline departments, such as Health, Education and Social Development, which have faced sustained pressure due to reductions in the equitable share over the years.

"In KZN, equitable cuts from National Treasury amount close to R80 billion over the past nine years. This is amid increases in expenditure items," the MEC said.

Rodgers also urged Godongwana to urgently pursue the taxation of online gambling, arguing that it presents a viable opportunity to generate additional revenue for improved service delivery.