
Holding the line: fiscal discipline takes centre stage
National Treasury Director-General Duncan Pieterse says South Africa’s core fiscal challenge is structurally low economic growth that trails population expansion.

National Treasury Director-General Duncan Pieterse says South Africa’s core fiscal challenge is structurally low economic growth that trails population expansion.

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

The finance minister defends the VAT hike as an urgent fiscal necessity, warning that suspending it could blow a R13.5bn hole in the Budget.

With South Africa’s debt-to-GDP ratio at 75.1%, Finance Minister Enoch Godongwana faces a tough balancing act – can his Budget Speech reassure investors and spark economic growth?