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Even Government Does

Every February, Government puts together a Budget based on how much money it expects to receive and how much it plans to spend. But Government doesn’t simply make the Budget and forget about it.

Later in the year, in October, they go back and check what really happened and then make adjustments in the MTBPS.

This year, the Medium Term Budget Policy Statement showed exactly why making adjustments is necessary. Government’s tax income was R17.1 billion higher compared to the February estimate, but the expected economic growth for 2026 was reduced from 1.6% to 1.2%. So, better in one area, worse in another.

Your household budget works in much the same way.

Perhaps you planned to spend R2 000 a month on transport, but rising fuel prices can suddenly mean that you are now spending R2 600. Continuing to stubbornly write R2 000 in your budget for transport will not make the extra R600 go away.

A realistic budget needs to change to match reality.