UASA Media Release: 12 November 2025
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Statement by Abigail Moyo, spokesperson of the trade union UASA:
The Interim National Budget Review delivered by Finance Minister Enoch Godongwana this afternoon focused on fiscal discipline rather than ambitious new spending or bold tax cuts.
His message to South Africans was to expect continuity of stability measures rather than major giveaways. The government will protect core services and social spending while trying to get its fiscal house in order, but there is limited space for big handouts or tax cuts right now. Positive results for workers will depend on how quickly reforms deliver better services and whether growth accelerates to provide the capacity for improvement.
Godongwana highlighted that the overall budget deficit was forecast to improve from 4.5% of Gross Domestic Product (GDP) currently, narrowing to 2.7% by 2028/29 – a level last achieved in 2008/09. This is good news for workers – if the government can hold debt steady it could ease pressure on higher taxes or cuts in essential services in the future.
The inflation-target band was lowered from the previous 3-6% range to a fixed target of 3% (±1 percentage point tolerance band), presumably to reduce inflation expectations and allow for lower interest rates.
Revenue was reported to be higher than earlier estimates (by about R19.3 billion) and debt-service cost growth is slowing (anticipated to average 3.8 % annually over the medium-term vs 7.4 % earlier). For households this means the government may have more breathing room to protect social spending (grants, health, education) rather than diverting everything to interest.
Godongwana emphasised value for money in spending by implementing a “Targeted and Responsible Savings” (TARS) initiative to eliminate waste, duplication, and under-performing programmes. This can result in better service delivery, for instance, fewer delays, better infrastructure and less money wasted.
What may make life harder for workers, is the weak growth forecast. Godongwana said the weak growth outlook meant that many structural reforms and growth levers must carry more weight (rather than relying on cyclical boosts). The economy is expected to continue performing weakly, underscoring structural challenges such as low investment, constrained logistics/energy and high unemployment. For workers this means less job creation, lower pay increases, and less room for tax relief. For many households already under cost-of-living pressure, this will be a major concern.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.