Government Tables E36.92 Billion Budget for 2026/27

The Minister of Finance, Neal Rijkenberg, has presented a E36.92 billion national budget for the 2026/27 financial year.

The budget depicts an increase from the E32.61 billion allocation in the previous financial year, signalling government’s commitment to growth, job creation and fiscal discipline.

Government projects revenue and grants of E31.90 billion for the 2026/27 financial year, with appropriated recurrent expenditure set at E29.14 billion and capital expenditure at E7.78 billion, bringing total expenditure to E36.92 billion.

The budget is expected to result in a fiscal deficit of E5.02 billion, equivalent to 4.9 percent of the Gross Domestic Product (GDP).

Delivering his Budget Speech in Parliament this morning under the theme “Agape Love — Love in Action for Economic Transformation,” Minister Rijkenberg said the budget prioritised economic growth, job creation and fiscal prudence, while responding to the welfare of citizens.

He highlighted that government revenue, excluding grants, was projected at E31.42 billion — translating to 30.4 per cent of GDP — a 7.8 per cent increase from the 2025/26 financial year.

The Minister said Southern African Customs Union (SACU) receipts were expected at E11.4 billion, with over E300 million injected into the SACU Stabilization Fund.

Non-SACU revenue was projected at E19.05 billion, of which E18.09 billion would come from taxes and E962 million from non-tax sources.

Grants are expected to decrease to E474 million from E585 million last year.

Tax Revenue Projections

Rijkenberg shared that total income taxes were projected to rise from E9.05 billion to E10.06 billion, driven largely by the salary review, which would increase personal income tax receipts by 11.7 percent to E6.48 billion.

“Taxes on goods and services, excluding SACU receipts, are expected to grow by 17.7 per cent to E8.92 billion, with Value Added Tax (VAT) increasing to E7.30 billion. Fuel tax remains largely unchanged at E1.42 billion,” he said.

Expenditure and Wage Bill

The Minister further noted that recurrent expenditure of E29.14 billion was up by 14.7 per cent, largely due to the salary review, while capital expenditure totalled E7.78 billion, reflecting an 8.1 per cent increase.

The Public Service Wage Bill was budgeted at E12.44 billion. This includes:

• E635.35 million for the 85 per cent back pay

• E535.28 million for allowances to complete last year’s salary review

“Despite the increase, the wage bill remains manageable at 33 per cent of total expenditure, down from 42 per cent in 2018/19, with plans to reduce it below 30 per cent over the medium term,” he said.

Growth, Jobs and Poverty Reduction

Minister Rijkenberg noted that poverty and unemployment remained the country’s main challenges.

“Our goal is to ensure GDP growth exceeds population growth, creating better jobs, higher salaries and opportunities for the unemployed,” he said, adding that job creation was a central theme of this year’s budget.

He described the budget as a moral document reflecting national priorities.

“Agape love is not passive. It is sacrificial, disciplined and responsible. It builds institutions, strengthens families, pays taxes honestly, fights corruption and serves the nation faithfully,” he said.

The Minister said the budget also responded to His Majesty’s call for improved service delivery, youth empowerment, better healthcare and zero tolerance for corruption.

He added that increased capital expenditure on infrastructure, energy, water, digital systems and industrial capacity underscored government’s commitment to strategic and sustainable growth.

“This is a pro-growth, pro-discipline and pro-investment budget. Growth without discipline makes us fragile, while Agape love demands that we do not burden our children with reckless debt,” he said.

📊 Key Budget Figures

• Revenue and Grants: E31.90 billion

• Appropriated Recurrent Expenditure: E29.14 billion

• Appropriated Capital Expenditure: E7.78 billion

• Total Expenditure: E36.92 billion

• Fiscal Deficit: E5.02 billion (4.9% of GDP)