Trade union United Association of South Africa (UASA) says Finance Minister Enoch Godongwana’s 2026 Budget offers important relief to workers but warns that stronger economic growth is urgently needed.
Responding to Finance Minister Enoch Godongwana’s Budget Speech, UASA spokesperson Abigail Moyo welcomed the adjustments to personal income tax brackets and the withdrawal of the proposed R20 billion in additional taxes.
“These measures help protect workers’ incomes and purchasing power at a time when many South Africans are facing high unemployment and rising living costs,” Moyo said.
However, she cautioned that projected economic growth of 1.6% in 2026, averaging 1.8% over the medium term and reaching 2% by 2028, would not be sufficient to significantly reduce unemployment or meaningfully improve livelihoods.
“Fundamental economic renewal is urgently needed. Fiscal relief alone will not address South Africa’s structural economic weaknesses,” she said.
UASA strongly supported government’s commitment to invest more than R1 trillion in infrastructure over the medium term, describing it as critical for stimulating economic activity and job creation.
However, the union raised concerns about proposed reductions in public transport investment.
“Public transport is essential for millions of workers and remains a critical economic component,” Moyo said.
The union also welcomed the R292.8 billion allocated to social grants, as well as additional funding for education, healthcare, and municipal infrastructure.
In particular, UASA supported the R21.3 billion allocation to strengthen health services and employ doctors.
“We cannot afford a struggling healthcare system while qualified medical professionals remain unemployed,” Moyo said.
While acknowledging the positive allocations, UASA emphasised that long-term economic inclusion must be driven by sustainable job creation rather than reliance on social assistance.
“Minister Godongwana, our people need stable jobs and incomes that can sustain them,” Moyo said.
UASA added that it will closely monitor the implementation of the Budget and continue advocating for policies that promote labour engagement, small business development, and stronger economic growth.
Saturday Star