No jargon. Just the things that matter to you.
The 2025 Budget was recently presented — and while it’s being called “Budget Speech 3.0,” most South Africans just want to know one thing:
How will it affect my life, my family, and my hustle?
We’ve broken it down into what matters most — from the gogo selling veggies on the corner to the young graduate chasing their first job.
Let’s Unpack the 2025 Budget
VAT Stays at 15% – No Price Shock
Good news for your grocery run: VAT isn’t going up. That means no extra tax on the basics like bread, maize, cooking oil, or public transport. Your monthly budget won’t be squeezed tighter (at least not because of tax hikes).
Learn More: Check Your Slips! VAT Must Stay at 15%, Says SARS
Social Grants Are Going Up
If you rely on a grant — or care for someone who does — there’s relief on the way.
Old age will increase in April and again in October.
The R370 Social Relief of Distress (SRD) grant is extended until March 2026.
This means more money in the hands of those who need it most.
Learn More: SASSA Social Grants Increase & SRD Grant Extended Until March 2026
More Support for Schools and Children
More money will go to public schools and early childhood education. This means:
More teachers stay employed.
More kids get into preschool.
Less strain on overcrowded classrooms.
It’s a long-term investment that helps every child get a fair start.
Health Services Get a Boost
If you visit public clinics or hospitals, here’s some hope:
800 new community service doctors will be hired.
Extra funds will go to stocking essential medicine and improving services.
This could mean shorter queues, more staff, and better care.
Fuel Prices Going Up Slightly
From June 2025, the fuel levy will increase by:
16 cents per litre for petrol
15 cents per litre for diesel
It’s a small bump, but it will affect transport costs — especially if you drive a lot or use taxis regularly.
Massive Investment in Roads, Power & Water
Government is planning to spend over R1 trillion on:
Fixing and building roads
Improving public transport
Expanding electricity supply
Improving water infrastructure
This is about creating jobs and making daily life smoother for everyone.
Free Basic Services Continue
If you qualify as an indigent household, you’ll still get free basic water and electricity.
But there’s a catch: municipalities must step up to fix broken services and deliver consistently.
Fighting Corruption – Slowly but Surely
There’s a stronger push to recover stolen funds and prevent waste. This means more money for services, not corrupt officials. It’s a slow process, but every cent recovered counts.
Jobs and the Economy Still a Big Focus
Government is banking on infrastructure projects and economic reforms to create jobs and boost small businesses.
If you’re unemployed, this could open up new work opportunities — but change might take time.
So, What Does It All Mean for You?
You’ll pay the same VAT on goods and services.
If you get a grant, expect a bit more each month.
Health clinics and schools should slowly improve.
Free electricity and water will continue for the poorest.
Fuel will cost a bit more from June.
Jobs and economic growth are still on the agenda — but patience is needed.
FAQs — What You Might Be Wondering
Q: Will my grocery bills go up because of VAT?
A: No, VAT stays at 15%, so the government won’t be charging extra tax on your basic goods this year.
Q: How much will my social grant increase?
A: The old age grant increases by R120 in April 2025, and an additional R10 in October 2025.
Q: Why is fuel getting more expensive?
A: The government is increasing the fuel levy by a small amount to help fund public services and infrastructure. It’s the first increase in three years and follows inflation.
Q: Will there be more jobs because of this budget?
A: The government is investing in infrastructure and reforms aimed at creating jobs, but it may take time before everyone sees the benefits.
Q: Are free basic services like electricity and water safe?
A: Yes, millions of poor households will continue receiving free basic electricity and water, but municipalities need to improve service quality to keep it sustainable.
Q: How is the government fighting corruption?
A: The government is actively recovering stolen public funds and cutting waste, so more taxpayer money goes towards services you rely on.
This year’s budget is all about keeping things steady while trying to improve what matters most: education, healthcare, jobs, and daily living costs.
It’s not perfect. But it’s something. And for many South Africans just trying to get by — that little something can make a big difference.
Read Full Speech Here: Minister Enoch Godongwana: Budget Speech 2025
