CAPE TOWN, Thursday 22 October 2026 — The Freedom Front Plus (FF Plus) and RISE Mzansi have welcomed several measures announced in the 2026 Medium-Term Budget Policy Statement (MTBPS), while raising concerns about government expenditure, municipal accountability and the need for longer-term relief from rising living costs.
Finance Minister Enoch Godongwana delivered the MTBPS in Parliament on Wednesday, 21 October, outlining revised economic forecasts, additional spending allocations and temporary fuel levy reductions.
Both parties acknowledged aspects of the fiscal framework but differed in their assessments of how government should allocate available resources.
Fuel levy reductions welcomed
The MTBPS announced a temporary reduction in the general fuel levy of R3 per litre for diesel and R1.50 per litre for petrol from 4 November until 1 December 2026.
The reductions will subsequently decrease to R1.50 per litre for diesel and R1 per litre for petrol until 5 January 2027.
According to National Treasury, the measures will provide approximately R10 billion in relief to households and businesses.
FF Plus finance spokesperson Wouter Wessels welcomed the intervention but said further measures would be required in the February 2027 national budget to address the cost of living and support economic growth.
RISE Mzansi national leader Songezo Zibi similarly welcomed the reductions but questioned whether temporary relief would adequately address rising transport, food and business costs.
FF Plus raises concerns over expenditure and municipalities
In a statement issued on Wednesday, Wessels said the MTBPS reflected changes in South Africa’s economic circumstances since the February budget, particularly weaker economic growth, higher inflation and rising fuel costs.
The party welcomed higher-than-expected tax revenue, the stabilisation of government debt and the proposed statutory fiscal anchor intended to strengthen fiscal discipline.
However, Wessels questioned the decision to increase expenditure following improved revenue collections rather than allocating more funding to contingency reserves.
He said additional spending would need to produce measurable improvements in public services and economic development.
The FF Plus also welcomed the additional R823 million allocated to the South African National Defence Force for operations aimed at addressing gang-related crime and illegal mining.
Wessels said effective management and oversight would be necessary to ensure that the additional resources achieved their intended objectives.
On local government, the party linked the Minister’s acknowledgement of service delivery challenges to what it described as failures under ANC-led administrations.
Wessels warned that additional municipal funding could be wasted without improvements in financial management and accountability.
His comments came ahead of the 4 November local government elections, when voters will elect new municipal councils.
RISE Mzansi gives MTBPS a 7/10 assessment
RISE Mzansi national leader Songezo Zibi gave the MTBPS a rating of seven out of ten, welcoming what the party described as a shift towards productive investment and more targeted government expenditure.
The party supported Treasury’s identification of R38.1 billion in medium-term savings, as well as proposals to strengthen fiscal discipline and increase infrastructure investment.
It called for faster implementation of infrastructure projects through public-private partnerships, pension fund investment and alternative financing arrangements.
RISE Mzansi also welcomed the allocation of R3.8 billion to employ more than 3,500 additional social workers to strengthen responses to gender-based violence and femicide.
The party supported the additional R1.5 billion allocated over three years for agricultural extension officers, which it said could contribute to improved local food production.
However, Zibi raised concerns about R7.8 billion in savings identified from the Human Settlements Development Grant, which Treasury linked to inefficiencies and poor implementation.
The party said reductions associated with housing programmes could adversely affect communities requiring accommodation and basic infrastructure.
RISE Mzansi also called for the R13 billion identified through measures addressing social grant fraud to be directed towards food security and household-level agricultural initiatives.
It further criticised what it regarded as insufficient targeted relief for small businesses and public rail commuters.
Municipal funding and service delivery remain central concerns
Local government featured prominently in both parties’ responses.
The MTBPS allocated an additional R21.8 billion to the local government equitable share over the medium term to address higher costs associated with the provision of basic municipal services.
Treasury also announced an additional R13.4 billion in general fuel levy allocations to metropolitan municipalities over the medium term.
Godongwana acknowledged continuing weaknesses in municipal financial management and service delivery, saying increased funding would need to be accompanied by improved accountability and operational performance.
The FF Plus emphasised the need for accountable municipal administrations, while RISE Mzansi supported the additional funding but called for stronger project oversight and infrastructure delivery.
Further fiscal decisions expected in 2027
The MTBPS revised South Africa’s 2026 economic growth forecast downwards from 1.6% to 1.2%, reflecting a weaker economic outlook.
Treasury also revised projected gross tax revenue for 2026/27 upwards by R17.1 billion compared with its February forecast.
The government is expected to provide further details on its fiscal measures in the February 2027 national budget, including the final design of a proposed national online gambling tax.
Draft legislation intended to establish a statutory fiscal anchor is also expected to be tabled in Parliament during 2027.
Parliament’s finance and appropriations committees will continue considering the fiscal framework and related budget legislation following the MTBPS.
