Debt stabilisation achieved

For the first time in nearly two decades, South Africa's debt-to-GDP stabilised at seventy eight point four percent in twenty twenty-five to twenty twenty-six.

“For the first time in nearly two decades, our debt-to-GDP stabilised, at 78.4% of GDP in 2025/26”

Fuel levy cut announced

Finance Minister Enoch Godongwana announced the fuel levy will be reduced by three dollars per litre for diesel and one dollar fifty per litre for petrol from November fourth to December first twenty twenty-six.

“The fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 up until 1 December 2026.”

Revenue boost from mining

The projection for gross tax revenue has been revised upwards by seventeen point one billion compared with the February estimate, driven by higher precious metals prices.

Deficit narrowing faster

The budget deficit will narrow to four point three percent of GDP this year compared to the four point five percent forecast in February, and is projected to fall to two point five percent by…

“The budget deficit is also better than we expected in February. It will now narrow to 4.3% of GDP this year compared to the 4.5% forecast at the time of the Budget.”

Debt trajectory improving

Debt-to-GDP is projected to descend to seventy six point six percent by twenty thirty and to sixty six point six percent by twenty thirty-five, marking a reversal from years of rising debt.

Ten billion for drought response

Government is increasing the contingency reserve to ten billion in twenty twenty-six to twenty twenty-seven for drought and El Niño response, and potential responses to additional energy price spikes.

Treasury director on fiscal space

Treasury Director-General Duncan Pieterse told Daily Maverick that fiscal space had opened up to allow for measures to respond to challenges such as elevated fuel prices or drought.

“The fuel levy relief for us is an appropriate thing to do given where prices are, provided they can be funded without deviating from our fiscal targets”

Ratings upgrade prospects

Treasury is confident these improvements will be noted by ratings agencies as South Africa strives to regain investment grade status. Fitch and Moody's will both update their ratings reviews before year end.

Fiscal anchor in legislation

Finance Minister Godongwana said government wants to embed a fiscal anchor in legislation requiring each administration to commit to fiscal objectives consistent with its electoral mandate and report against them at every Budget.

Growth forecast cut

South Africa's growth forecast for twenty twenty-six has been cut to one point two percent from one point six percent projected in February, though growth is expected to reach one point six percent in twenty…

“Growth is expected to reach 1.6% in 2027, and 2% by 2029... But growth remains too low”