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FILE | Minister Enoch Godongwana
Over the medium term, South Africa’s debt-service costs will increase by 3.8 percentage points annually, a significant reduction from 7.4 percent growth projected amid in the 2025 Budget, this is according to Finance Minister Enoch Godongwana.
Tabling this year’s Mid-Term Budget Policy Statement (MTBPS) to Parliament, in Cape Town, he said this is the first time since the 2008 financial crisis that public debt will not grow as a percentage of revenue.
Infographic by: Sibusiso Biyela
Godongwana says since the year 2008, spending has steadily exceeded revenue, driving up debt and debt-service costs.
Nevertheless, he has pledged to turn things around this year reaffirming that revenues will exceed budget estimates by R19.3 billion, also revealing that the country’s debt servicing costs have been lowered by R4.8 billion.
“Over the MTEF, debt-service costs will grow by 3.8 percent annually. This is a significant reduction from the 7.4 percent growth anticipated at the time of the 2025 Budget.”
Godongwana told Parliament that the primary budget surplus will grow from R68.5 billion in 2025/26 to R224 billion by 2028/29 in the mid-term.
He reiterated that after more than a decade of primary budget deficits, government began running a budget surplus in 2023/24, which he said was not a ‘pot of money’ during the 2025 Budget speech in May.
“The overall budget deficit will narrow from 4.5 per cent of GDP in 2025/26 to 2.7 per cent in 2028/29.”
Godongwana is optimistic that the growing primary surplus will allow government to stabilise and then reduce debt-service costs.
WATCH | Finance Minister Enoch Godongwana says, “I am pleased to inform the house and the country that we are on track to restore fiscal sustainability.” He adds that government debt will stabilise in 2025/26 at 77.9 per cent of GDP. pic.twitter.com/YzwXO2pLLn
— SABC News (@SABCNews) November 12, 2025
