Government debt projected to hit R6 trillion as South Africa borrows R1.6 billion daily

SOUTH Africa's public debt is set to surge to unprecedented levels in relation to gross domestic product (GDP) over the 2025/26 fiscal year.

- SIPHELELE DLUDLA

This comes as the national government will be borrowing an average of R1.6 billion per day on the back of rising spending demands and insufficient additional revenue.

According to the Budget Review 2025 documents released on Wednesday, the gross borrowing requirement for the government has increased from R579 billion at the time of the 2024 Budget to R588.2bn in 2025/26.

This means that the government's borrowing requirements will see Treasury going to the market to raise at least R1.61bn everyday of the year, up from a daily average of R1.58bn.

The National Treasury said this borrowing requirement will be financed through a combination of domestic shortand long-term loans, foreign-currency loans and the use of cash balances.