
MTBPS: Revenue outlook improves, but fiscal pressures remain
Stronger tax collections give Treasury room for additional spending and temporary fuel relief, but fading commodity gains and high debt-service costs constrain the outlook.

Stronger tax collections give Treasury room for additional spending and temporary fuel relief, but fading commodity gains and high debt-service costs constrain the outlook.

The Social Relief of Distress grant might be extended while a new policy is finalised.

Draft amendments to the SRD Regulations have been published to give effect to the grant’s continuation from April 2026 to March 2027.

‘Due to the complexity and seriousness of this case … it deserves the attention of the Supreme Court of Appeal,’ says Judge Leonard Twala.

Financially squeezed government wants to overturn a judgment declaring aspects of the SRD regulations unconstitutional.

A dip in corporate and VAT revenues has left a R10bn hole in expected tax collections. As the Budget approaches, Treasury faces a difficult balancing act.

The judgment strikes down restrictive aspects of the grant regulations, ordering the government to increase the grant and ensure that no eligible applicants are excluded.

MPs are also told that the fiscus cannot afford a permanent and expanded Social Relief of Distress grant without tax increases.