The African Transformation Movement (ATM) has dismissed the 2025 Medium Term Budget Policy Statement delivered by Finance Minister Enoch Godongwana as uninspiring and lacking substance, saying it fails to respond to South Africa’s worsening unemployment, poverty, and inequality.
ATM national spokesperson Zama Ntshona said the budget fell short of the decisive action needed to transform the economy and improve the lives of ordinary South Africans.
“The minister touched on important issues but failed to provide clear plans to deal with job creation, inequality, and the cost of living. The country needed solutions, not statements of intent,” he said.
Godongwana presented the mini budget in Parliament on Wednesday, saying government debt will stabilise at 77.9 percent of GDP by the 2025-26 financial year. He said government’s spending priorities remain focused on job creation, infrastructure development, and protecting social programmes that cushion citizens from rising living costs.
The minister confirmed that the social grant system will continue to support vulnerable groups, including children, the elderly, and persons with disabilities. The child support, old age, and disability grants will continue to be adjusted in line with inflation. He said non-interest government spending will mainly fund essential services such as education, healthcare, and policing.
However, the ATM said these measures are not enough to address South Africa’s deepening economic crisis. “There is no practical strategy for creating sustainable jobs for young people and women. The minister acknowledged the unemployment problem but failed to present any targeted employment plan,” Ntshona said.
He said the budget’s references to structural reforms in energy and logistics would not immediately help the unemployed. “Reforms alone will not close the skills gap. We expected a plan to strengthen vocational training and link skills development to labour market needs, but that was missing,” he said.
On infrastructure, the ATM said it welcomed the minister’s statement that capital spending would growth by 7.5 percent over the medium term, but criticised the lack of detail on which projects will be prioritised. “Without clear timelines and project lists, the public cannot hold government accountable,” Ntshona said.
The party also raised concerns about fiscal policy, warning that the focus on debt stabilisation should not come at the expense of social spending. “The minister said debt will stabilise, but he did not say how this will happen while people are struggling with rising food and transport prices. We need a balance between fiscal discipline and economic relief,” Ntshona said.
He said the mini budget offered no new measures to cushion poor households from the rising cost of living. “We expected an expansion of zero rated VAT items and higher social grant increases to help families cope. Instead, the budget offered more of the same,” he said.
The ATM said the government must show greater commitment to targeted public investment in sectors that have the potential to create jobs and stimulate growth. “Investment in health, education, and the green economy would create employment while building a sustainable future. The budget should have made these sectors a priority,” said Ntshona.
The party also urged the government to promote unity and policy coordination within its coalition, saying political instability undermines economic recovery. “The minister spoke about cooperation, but there was no clear plan for ensuring alignment among coalition partners,” Ntshona said.
The ATM proposed several steps to improve the economy, including creating incentives for companies to hire young people and first time workers, increasing investment in technical and vocational training, and setting out clear infrastructure plans with transparent funding mechanisms.
“The time for vague commitments is over. South Africa needs a people centred economic plan that tackles unemployment and inequality head on,” Ntshona said.
Other political parties also reacted to the mini budget. The Economic Freedom Fighters said the budget protects the interests of big business, while the Democratic Alliance criticised government for failing to stop wasteful expenditure. The Good Party welcomed continued social support, and the MK Party said the budget ignored the realities faced by poor communities.
Ntshona said the ATM remains committed to pushing for policies that promote fairness, jobs, and inclusive growth. “This mini budget does not rise to the challenge. The people of South Africa deserve better,” he said.
