Parliament adopts '26 Fiscal Framework amid concerns over growth, debt
Parliament has officially adopted the 2026 Fiscal Framework and Revenue Proposals, marking a key milestone in the national budget process.
Both the National Assembly and the National Council of Provinces approved the framework during plenary sittings on Tuesday afternoon.
The 2026 National Budget was tabled last month by Finance Minister Enoch Godongwana in line with the Public Finance Management Act and the Money Bills Amendment Procedure and Related Matters Act.
The fiscal framework sets out the government’s economic policy direction for the financial year, including revenue projections, spending priorities, and borrowing plans.
Speaking after the vote, Chairperson of the National Assembly’s Standing Committee on Finance, Mokgadi Mashaba, said the 2026 Fiscal Framework represents a carefully considered approach to stabilising public finances, while ensuring that essential services are funded.
"We welcome the effort to maintain the social wage over the medium term, but the current growth trajectory remains insufficient to meaningfully address unemployment or improve livelihoods. Parliament will continue to monitor the implementation of these proposals closely."
The Parliamentary Budget Office cautioned that, while the government aims to stabilise debt, public debt levels remain high and continue to pose ongoing risks to fiscal sustainability.
It also flagged concerns about spending patterns, noting that a large portion of the budget is consumed by debt servicing costs and public sector wages, leaving limited room for developmental programmes.
Committees also raised concerns about the adequacy of social support, noting that current grant increases may not sufficiently shield vulnerable households from the rising cost of living.
"We need to review the Social Relief of Distress grant to ensure it provides real relief to those most in need," Mashaba said.
On local government funding, committees highlighted that municipalities receive a relatively small share of nationally raised revenue despite their central role in service delivery.
"Municipalities are on the frontline of service delivery. Strengthening their capacity and funding is critical for our citizens," she added.
To boost economic growth and job creation, Parliament called for faster implementation of structural reforms, increased support for small businesses, improved infrastructure delivery, and stronger action against illicit trade.
"We must reduce wasteful expenditure, manage debt risks prudently, and enhance transparency and oversight to maintain public trust in government finances", Mashaba noted.
In the National Council of Provinces, all nine provinces supported the adoption of the framework. In the National Assembly, 227 members voted in favour, 71 opposed, and there were no abstentions.
With the fiscal framework now adopted, Parliament will proceed to consider the remaining money bills — including the Division of Revenue Bill and the Appropriation Bill — before the national budget is finalised.
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