Far from fiscal turning point - economists

Government debt 'still way too high'

- By Mpho Sibanyoni

Duma Gqubule

Some economists have berated the 2026 budget, labelling it a plan that overpromises but is set to underdeliver.

Their criticism comes after National Treasury projected a higher gross domestic product growth in the coming years, as well as director-general Duncan Pieterse’s statement that sovereign debt as a share of GDP and debt service costs will decline in the coming years, while also stating that the government was raking in more debt to take advantage of favourable market rates, a position one economist said was contradictory.

This comes as the country spends about 20% of its revenue to service debt, which is the government’s single biggest expenditure item.