Treasury to overhaul budget process, considers fiscal anchors amid rising debt burden

Siphelele Dludla

Finance Minister Enoch Godongwana has announced that the National Treasury will embark on a significant overhaul of the nation’s budget process. This initiative aims to reassess the foundational assumptions that guide budget allocations, with the goal of optimising public expenditure and ensuring it aligns more closely with the current needs of the country. The announcement comes amid concerning projections regarding the country’s financial health, with gross government debt expected to reach R5.69 trillion - approximately 76.1% of the gross domestic product (GDP) - this year. The debt levels are anticipated to stabilise at 76.2% of GDP by the fiscal year 2025/26. In tandem, debt-service costs are projected to surge from R389.6 billion in 2024/25 to R478.6bn by 2027/28, comprising roughly 21.7% of revenue in 2024/25. Godongwana said the proposed budgetary…

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Star South Africa (Digital) - 1 Issue, 2025-03-13

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