Presenting the 2025 Medium-Term Budget Policy Statement (MTBPS) before Parliament in Cape Town, Godongwana outlined the government\u2019s plan to balance short-term challenges with long-term growth and reform.<\/p>\n
<\/p>\n
Godongwana confirmed that public debt will stabilise at 77.9% of gross domestic product (GDP) in 2025\/26, marking the first time since the 2008 global financial crisis that debt will not increase as a share of the economy. He said improved revenue collection, coupled with tighter spending controls, has placed SA on a path toward fiscal sustainability.<\/p>\n
<\/p>\n
To reinforce macroeconomic stability, Godongwana announced a revised inflation target of 3%, with a tolerance band of one percentage point, replacing the previous 3\u20136% range. The adjustment, agreed upon with the SA Reserve Bank, is designed to lower inflation expectations, create space for lower interest rates, and support investment and job creation over time.<\/p>\n
<\/p>\n
Godongwana also reported that the country\u2019s real GDP is expected to grow by 1.2% in 2025 and average 1.8% between 2026 and 2028. He credited structural reforms in the energy and logistics sectors, under Operation Vulindlela, for helping to ease load-shedding, improve port efficiency, and unlock investment in renewable energy and infrastructure.<\/p>\n
<\/p>\n
To tackle wasteful expenditure, Godongwana said the Targeted and Responsible Savings initiative will cut $390 million in low-priority and inefficient programmes. He also unveiled new measures to fight illicit trade and fraud in the social grants system, while improving transparency through a new government procurement payments dashboard.<\/p>\n
<\/p>\n
Highlighting progress under SA\u2019s G20 presidency, Godongwana said the country had successfully placed Africa\u2019s development priorities, including debt sustainability and infrastructure finance, at the centre of the global agenda.<\/p>\n
<\/p>\n
\u201cSA is choosing growth, stability, and reform,\u201d he concluded, reaffirming government\u2019s commitment to disciplined spending and inclusive development.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":13100,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-15118","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"South Africa's (SA)Finance Minister Enoch Godongwana has announced a new inflation target and a series of fiscal measures aimed at stabilising the country's economy, strengthening public finances, and restoring investor confidence.\u00a0","published_date":null,"news_description":"South Africa's (SA)Finance Minister Enoch Godongwana has announced a new inflation target and a series of fiscal measures aimed at stabilising the country's economy, strengthening public finances, and restoring investor confidence.\u00a0","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/15118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/15118\/revisions"}],"predecessor-version":[{"id":19495,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/15118\/revisions\/19495"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/13100"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=15118"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=15118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}