Godongwana confident on debt stabilisation as fiscal consolidation gains momentum

FINANCE Minister Enoch Godongwana has assured the markets that South Africa is on track to restore fiscal sustainability, stabilise public debt, and improve spending efficiency, even in a challenging low-growth environment.

- SIPHELELE DLUDLA

Delivering the 2025 Medium-Term Budget Policy Statement (MTBPS) on Wednesday, Godongwana said government remains committed to meeting the fiscal targets set out in the February Budget.

This is despite the public debt now expected to peak at 77.9% of GDP in the current fiscal year, slightly higher than the 77.4% estimated in May.

"I am pleased to inform the House and the country that we are on track to restore fiscal sustainability. Government debt will stabilise in 2025/26, at 77.9% of GDP," Godongwana said.

"This is the first time since the 2008 financial crisis that public debt will not grow as a percentage of GDP."

Godongwana said Treasury's fiscal strategy remains anchored on stabilising debt, growing the primary budget surplus, and improving efficiency in public spending.