
MTBPS: Revenue outlook improves, but fiscal pressures remain
Stronger tax collections give Treasury room for additional spending and temporary fuel relief, but fading commodity gains and high debt-service costs constrain the outlook.

Stronger tax collections give Treasury room for additional spending and temporary fuel relief, but fading commodity gains and high debt-service costs constrain the outlook.

While borrowing remains substantial, improving bond yields, firmer revenue, and reduced debt-service growth suggest a more credible consolidation path.

Finance Minister Enoch Godongwana won’t reveal where the spending cuts or savings will come from but says South Africa must “do more with less”.

The bank’s Financial Stability Review also flags the growing financial distress among households and SMMEs and the vulnerabilities in the commercial real estate sector.

The SA Reserve Bank is concerned about the liquidity of the country’s financial markets and institutional investors’ exposure to government bonds.