Finance Minister Enoch Godongwana delivered the 2026 Budget Speech yesterday, outlining how much money South Africa has to work with, how government plans to use it, and where that money will come from. But beyond the big words and long numbers, what does it mean overall, for your salary and your petrol tank?
OM Bank realises the Budget Speech isn’t just a national conversation, it’s a personal one that impacts every South African. This year we’ve simplified the headlines into what they really mean for your pocket, in clear and simple terms.
The good news: Inflation has slowed to around 3.5%, which means prices aren’t rising as fast as before. That usually means paying back loans could get a bit cheaper.
Here are the three big changes that consumers can expect for their pockets:
1. Big picture: South Africa has a lot of debt
The government still owes a lot of money, about 75% of GDP.
GDP is a way of saying: the country’s 'income' or how much the country produces or earns overall. Because government debt is high, a big chunk of money goes to paying interest on that debt, instead of using it for services.
What this means:
- Spending money more carefully and cutting out unnecessary expenses.
- Upkeep of things that matter, roads, electricity and transport.
- Create jobs, support local businesses and help us benefit from local activity.
2. Personal income tax (tax from your salary)
'Income tax' is the money taken from your pay to fund government services.
What’s happening now: Good news here – there is slightly more take-home pay with tax brackets having been adjusted. This means that consumers will no longer be pulled into higher tax brackets purely because of inflation.
At OM Bank we encourage you to monitor your take-home pay and deductions closely.
Now is a good time to focus on small, consistent savings, even modest monthly contributions can build a cushion over time. Tools like ‘Pay Me First’ feature make saving automatic and manageable.
3) The price of petrol will increase
The fuel levy is a government charge added into fuel prices.
What changed: Fuel levy increased by 9c per litre and RAF levy increased by 7c per litre.
And when fuel goes up, transport, and food prices usually follow. Use this moment to rebalance your budget by:
- Reviewing your transport, food, and “small daily spend” categories
- Adjusting for potential price changes
- Using digital budgeting tools to track how your spending shifts.
In times like these, being in control of your money matters more than ever. Simple steps like reviewing your budget, paying down debt faster, and building an emergency fund can make a real difference. The right banking tools can help you stay ahead, not behind.
Join OM Bank today. Available now in the Apple App Store, Google Play Store and Huawei AppGallery.
Issued on behalf of OM Bank by The Noise Factory Marketing Agency.
For media queries, contact Nawhal Foster, communications senior manager: OM Bank | Email: az.oc.knabmo@retsof.lahwan | Mobile: 071 483 7939.
