Budget 3.0 Reaction: Praise for social relief, criticism of growth gap

Opposition parties had mixed reactions to Finance Minister Enoch Godongwana’s Budget 3.0 speech, with most welcoming the maintenance of social grants but warning the budget lacks the bold reforms needed to lift South Africa out of economic stagnation.

The DA's Dr Mark Burke said the minister “missed a critical opportunity to deliver a budget that drives reform, cuts waste, and boosts growth".

While the DA welcomed the scrapping of the VAT increase and the absence of personal tax hikes, Burke said this offered little comfort amid rising food and transport costs.

“The fuel levy hike is yet another indirect tax on poor and working South Africans. We are funding a failing state instead of fixing it.”

The uMkhonto weSizwe Party (MKP) was equally critical.

Party spokesperson Nhlamulo Ndhlela said: “This budget does not serve the poor. It’s a continuation of ANC elite policies that benefit the few while the masses remain unemployed and hungry.”

The MKP also raised concerns about debt levels, stating there was no clear plan to rescue the economy or reform public institutions.

The Economic Freedom Fighters (EFF) spokesperson Sinawo Thambo also tore into the budget, calling it “austerity masquerading as care".

“The ANC government cuts essential services, underfunds municipalities, and still expects the economy to grow. This is not a pro-poor budget; it’s a pro-corruption budget.”

The EFF decried infrastructure cuts and job creation allocations, warning that youth unemployment would worsen.

In contrast, the ANC defended the budget.

ANC national spokesperson Mahlengi Bhengu-Motsiri said the party welcomed the continued support for vulnerable groups.

“The preservation of social grants and increases in old age and child support grants affirm the ANC’s commitment to the poor,” she said.

Bhengu-Motsiri noted that investment in infrastructure and hiring of new police, teachers and health workers would “help improve service delivery".

Build One South Africa (BOSA) acting spokesperson Roger Solomons acknowledged the short-term relief through grants and the scrapping of the VAT hike, but raised alarm about shrinking infrastructure spend and job creation.

“The infrastructure budget has been halved. You can’t speak of growth without roads, water, and energy systems to support it,” he said.

Solomons also rejected cuts to frontline worker allocations, saying, “This will severely impact essential service delivery".

Inkatha Freedom Party (IFP) president Velenkosini Hlabisa struck a cautious tone.

“The good aspect is that frontline services, education, health, and social grants were maintained,” he said.

But he criticised the removal of zero-rated food items and the fuel levy hikes, warning: “These measures will increase food prices and hurt the poorest. The budget must be monitored closely to ensure funds are used prudently.”

Cosatu parliamentary coordinator Matthew Parks said the labour federation welcomed “the scrapping of the VAT hike, expanded public employment programmes, and infrastructure investments".

However, he warned that “municipalities are collapsing, and without local government reform, the economy will remain trapped".

Parks said the country was not in a crisis of revenue but in a crisis of growth and said the labour federation is calling for urgent reforms in energy, transport, and state capability.