The National Treasury says it is making progress in narrowing South Africa’s (SA) budget deficit to 4.5 % of gross domestic product (GDP) for the 2025/26 financial year.

Finance Minister Enoch Godongwana said this marks an improvement from the 4.8% projected in the 2025 Budget. He tabled the 2026/27 Budget in Parliament in Cape Town against what he described as a more favourable fiscal backdrop, with public finances reaching a turning point and stabilising for the first time in 17 years.

Godongwana said debt-to-GDP is expected to stabilise at 78.9% in 2025/26 before beginning to trend lower in the outer years.

“The slightly higher debt peak this year reflects weaker nominal GDP growth and our decision to take advantage of strong investor demand in domestic and global markets by increasing issuance in 2025/26,” he said.

He added that the main budget primary surplus for 2025/26 is projected to reach 0.9 % of GDP, signalling government’s commitment to fiscal consolidation while maintaining key spending priorities.

–ChannelAfrica–