Budget Deficit
latest news & developments
Budget: debt peaks but growth lags
The projected economic growth trajectory remains insufficient to address structural unemployment
Economists split on whether 2026 budget marks a real turning point
The growth outlook is insufficient to alter unemployment dynamics, some argued
South Africa to earmark R1.58 trillion towards social services
National treasury officials said the costing for the deployment of soldiers in crime-affected areas — as announced by President Cyril Ramaphosa, his Sona, had not yet been done
South Africa’s economy to grow by 1.6% in 2026 from 1.4% last year
Over the next three years, growth is projected to average 1.8% and reach 2% by 2028
Coalition takes wrangling over tax in the budget to parliament
Budget approval hangs in the balance and resistance to it is set to play out in the legislature’s finance committees
Budget 2.0: Political parties divided over VAT hike, albeit lower than initial proposal
The Democratic Alliance said the budget would struggle to pass in parliament, given the ANC’s lack of a majority
Steenhuisen reiterates DA opposition to tax hikes
His party would have yielded if any increases were guaranteed to be temporary and tied to an overhaul of state spending patterns
Tapping into gold and foreign reserve to pay debt servicing costs is risky for South Africa
Economists say the government can expect to incur inflationary and exchange rate costs from the move
Tax hikes will not be dramatic
A senior treasury official told MPs the intention was not to close the widening deficit through higher personal income taxes
Mid-term budget: Tax hikes on the horizon
Increases will be announced in the new year to raise an additional R15 billion in revenue
Controversial government spending cuts ‘paid off’
Fiscal consolidation is drawing to a close as the public purse was boosted by commodities, but the treasury will probably continue exercising restraint
Treasury lauds success of fiscal consolidation efforts
The state is set to achieve a primary budget surplus a year earlier than expected
Godongwana holds off on basic income grant decision, closes taps to state enterprises
Godongwana warns that the outer limits of the budget are non-negotiable as a debt cliff loomed
Democratic Alliance welcomes Godongwana’s ‘tough love’ for state-owned enterprises
The opposition party referred to the government’s economic policy as ‘hopelessly inadequate’ and an obstacle in the path towards stable public finances
Basic income grant not on treasury’s watchlist — yet
Treasury officials will model the effect of the grant on the fiscus if the need arises