Economist Duma Gqubule has urged Finance Minister Enoch Godongwana to prioritise economic growth and job creation over debt stabilization in the upcoming 2026 Budget Speech. South Africa’s economy has grown at an average of just 1.1% annually over the past 17 years, leaving GDP per person lower than it was in 2007.
Godongwana is expected to table the 2026 Budget in Parliament on Wednesday, outlining government plans for economic growth, public expenditure, and fiscal stability in what is anticipated to be a pivotal address.
“The Budget Speech takes place within the context of an unprecedented economic crisis. We are heading for two decades of decline in average living standards,” Gqubule said. He criticised the government’s optimistic outlook, adding “The government and the finance minister are gaslighting South Africans to believe that the economy has turned the corner. You will hear a story about unemployment and debt stabilising, which are completely untrue. Nothing has changed for the lived reality of South African people.”
Unemployment remains a pressing concern, with 12.4 million South Africans currently without jobs. Gqubule argued that debt stabilization should not take precedence over growth. “We have a GDP growth problem. If we must break the bank to get the economy growing, we must break the bank.”
He also advocated for public investment in infrastructure and employment programmes, emphasising their dual benefits. “Infrastructure has high GDP and multiple jobs. We should be expanding public employment programmes; we must create more jobs. We can’t continue like this,” he said.
As the debate over fiscal consolidation versus aggressive growth measures intensifies, all eyes will be on Godongwana when he presents the 2026 Budget, with economists and citizens alike looking for policies that address both economic growth and urgent social needs.
