South Africa’s 2026 Budget Marks ‘Turning Point,’ Says Finance Minister
17:57 25.02.2026 (Updated: 18:52 25.02.2026)
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South Africa’s 2026 Budget Marks ‘Turning Point,’ Says Finance Minister
Presenting the new fiscal plan, MF Enoch Godongwana said the country has reached a decisive moment after years of financial strain and economic pressure.
Five years ago, South Africa faced weakened state institutions, the fallout of COVID-19, and rising public debt. It was also placed on an international financial “grey list” due to deficiencies in systems designed to prevent money laundering.
However, consistent reforms and stricter financial management have begun to reverse that trajectory, according to the minister.
Public debt is now projected to peak at 78.9% of GDP this year before gradually declining. The budget deficit is expected to narrow to 4.0% in 2026/27 and further to 2.9% by 2028/29.
With debt stabilizing, pressure from interest payments is projected to ease, creating more room for public priorities.
Calling this period a 'turning point,' Godongwana stressed that disciplined fiscal policy has helped restore confidence, with the focus now on maintaining stability and building a sustainable foundation for long-term growth.
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Presenting the new fiscal plan, MF Enoch Godongwana said the country has reached a decisive moment after years of financial strain and economic pressure.
Five years ago, South Africa faced weakened state institutions, the fallout of COVID-19, and rising public debt. It was also placed on an international financial “grey list” due to deficiencies in systems designed to prevent money laundering.
However, consistent reforms and stricter financial management have begun to reverse that trajectory, according to the minister.
Public debt is now projected to peak at 78.9% of GDP this year before gradually declining. The budget deficit is expected to narrow to 4.0% in 2026/27 and further to 2.9% by 2028/29.
With debt stabilizing, pressure from interest payments is projected to ease, creating more room for public priorities.
Calling this period a 'turning point,' Godongwana stressed that disciplined fiscal policy has helped restore confidence, with the focus now on maintaining stability and building a sustainable foundation for long-term growth.
Subscribe to @sputnik_africa
Sputnik Africa | X
