On Wednesday, South Africa's Finance Minister, Enoch Godongwana delivered his 2025 Budget Speech.

Below, finance experts react to the minister's speech.

The Wealth Expert - Jurgen Eckmann, Wealth Manager at Consult by Momentum Jurgen said:

While the biggest debate from today’s Budget will no doubt centre around the VAT increase, the reality is that the Minister’s announcement regarding the personal income tax brackets not being adjusted for inflation also has severe implications on the consumer purse.

While there were no overt personal income tax increases, this lack of inflationary adjustment (and bear in mind, this is the second consecutive year this has happened) means that South Africans will ultimately take home less – especially if their annual increase pushes them into a new tax bracket. Had the Minister adjusted the brackets, consumers would still pay more in tax but it would be in line with their increase.

For example, let’s say someone earns R30,875 per month before tax (R370,500 per year). Should they receive a 7% inflationary annual increase from their employer, this will shift them into a new tax bracket. Without Treasury providing for this and adjusting the brackets, this means that the person – who now earns R33,078.75 per month before tax – will now pay R83,419 in annual income tax, which is almost R10,000 more in tax than they would have paid the previous year (R73,726). So while their net salary would have increased by 5,65%, their tax bill would have jumped by 13.15%.

With tax being a complex area for many individuals, it is always a good idea to chat to a qualified financial adviser who will help you navigate your tax affairs.

The Employment Expert - Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group

Nkosinathi said:

The 2025 Budget Speech was a critical turning point for South Africa, but it leaves us questioning how the youth will be meaningfully included in the economy because no hard and fast answers appeared to be given. With over R380 billion allocated to debt service, the government faces an uphill battle to create sustainable jobs. While Operation Vulindlela has initiated structural reforms, it’s unclear whether these will translate into lasting employment opportunities for youth or sustain small businesses in the long run.

Infrastructure spending of R1 trillion is commendable, but we must ensure that youth are not just passive participants. We must prioritise upskilling the next generation within the first year, aligning with essential sectors like transport and agriculture. For example, the rail sector and the anticipated water projects, like the Mkhomazi Project in 2027, must include actionable plans for youth employment today. Emerging farmers, too, need immediate support to bridge the gap until such projects come to fruition.

The public sector’s early retirement initiative should be paired with a strategy to bridge the experience gap with youth employment, ensuring these new opportunities translate into tangible skills development. Furthermore, the call for more teachers is an opportunity to recruit unemployed graduates into the teaching profession, but are we actively encouraging youth to pursue this rewarding career path?

While the SRD grant extension to March 2026 is a necessary stopgap, it’s disheartening to see no clear exit plan or transition to a basic income grant that will truly lift young people out of poverty. With youth unemployment still at crisis levels and no dedicated funds for youth employment interventions, the Budget misses an opportunity to inject the economy with the energy and creativity of young South Africans.

Small businesses are a key driver of job creation, yet there is little concrete support to help them scale. The youth need salaries, not handouts. If we are serious about tackling youth unemployment, we need comprehensive plans, like leveraging public-private partnerships, to create sustainable and inclusive jobs, especially in the first year of this term. Unfortunately, this vital opportunity for a stronger, youth-inclusive economy has not been seized in this budget.

The Education Expert - Arno Jansen van Vuuren, Managing Director at Futurewise - Arno said:

While the VAT hike announced today is sure to dominate headlines in the coming weeks – as well as the other measures that might be seen to hurt consumer finances, such as the lack of inflationary adjustments to personal income tax brackets (for the second year running) – it is important to keep in mind that the additional revenue generated will directly benefit vital sectors such as education. Today’s budget will ensure that 11,000 additional teachers remain in classrooms, while also boosting funding for Early Childhood Development, increasing the subsidy for young children to R24 per day while enabling ECD access for 700,000 more kids. Following SONA, we were hopeful that these issues would be addressed in today’s Budget, and I believe this focused investment is essential to building a brighter, more equitable future for our children.