The Inkatha Freedom Party (IFP) notes the 2025 Budget (Budget 3.0) delivered today by the Minister of Finance,Mr. Enoch Godongwana. We view this budget as a “work with what you have” type of budget—this is an honest reflection of the constrained fiscal space the country finds itself in, but also one that carries both gains and regressions.
Wins for Frontline Social Services and Infrastructure Investment
We welcome the continued investment in frontline social services, which reflects a commitment to protecting the most vulnerable in society. As correctly highlighted this budget has maintained vital areas such as:
- Education: Sustained funding with an additional R10 billion that has been added to the baseline as announced during the March 12 budget in order to expand access to early education is kept unchanged as well to ensure teacher employment increases and basic education delivery is met.
- Healthcare: Allocations that support the employment of doctors and healthcare workers.
- Social Grants: The continued support of social grants that bring much-needed relief to millions of South Africans—an IFP policy priority that was clearly articulated in our Election Manifesto.
In addition, R1 trillion in over three years investment in public infrastructure spending is a positive step forward. It offers much-needed stimulus for job creation and economic expansion, especially after more than a decade of economic stagnation and missed growth targets. This aligns with the IFP’s call for the state to invest in labour-absorbing infrastructure as a tool for inclusive development.
Missed Opportunities and Regressive Measures
However, we also note serious shortcomings in the budget, particularly with regard to its impact on the cost of living for the poor and the working class.
The removal of the proposed expansion of zero-rated items—which was initially included as a mechanism to provide targeted relief to the poorest—represents a missed opportunity to cushion vulnerable households from inflationary pressures. The decision to introduce a fuel levy further compounds this issue, as it will inevitably trigger:
- Increased food prices
- Higher transport costs
- Greater financial strain on low-income households
These regressive outcomes directly contradict the pro-poor principles that South Africa’s fiscal policy must champion in this time of deep inequality.
A Budget Aligned with Local Government Reform
We also acknowledge the alignment of this budget with the White Paper on the Review of Local Government, launched on Monday, 19 May 2025 by the IFP President and Minister of Cogta(Cooperative Governance & Traditional Affairs) Hon Velenkosini Hlabisa . Strengthening local government is a core IFP policy pillar, and we are encouraged that resource allocation is beginning to reflect the decentralisation agenda, which must include:
- Improved municipal revenue generation
- Professionalisation of local administration
- Enhanced delivery of basic services
Overall, this budget offers moments of encouragement, especially in its protection of key social services and infrastructure development. However, we remain concerned about measures that may exacerbate inequality and reverse gains made in poverty reduction. The IFP will continue to advocate for a fiscally responsible, pro-poor, and jobs-focused approach to economic recovery—grounded in transparency, accountability, and sustainable growth.
Issued by:
Nhlanhla Hadebe, MP
IFP Parliamentary Caucus Chief Whip
Member of the Standing Committee on Finance
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