This follows stronger-than-expected revenue collection, which National Treasury says will exceed earlier projections by $1.24 million.

Government says part of the additional revenue will be channelled towards growth-enhancing infrastructure projects and to cover costs related to next year’s local government elections.

Finance Minister Enoch Godongwana said public debt is now expected to stabilise at 77.9% of gross domestic product (GDP) in the 2025/26 financial year, the first time since the 2008 global financial crisis that debt will not rise as a share of GDP.

“Government debt will stabilise in 2025/26 at 77.9% of GDP. This is the first time since the 2008 financial crisis that public debt will not grow as a percentage of GDP. Since 2008, spending has consistently exceeded revenue, driving up debt and debt-service costs. These costs crowded out spending on critical services and exerted pressure on lending rates across the economy,” Godongwana said.

–SABC/ChannelAfrica–