Finance Minister Enoch Godongwana says government debt is expected to exceed R6 trillion by the 2025-26 financial year.
Delivering the 2023 Medium-Term Budget Policy Statement (MTBPS) in Cape Town yesterday, the Minister said the rise in debt service costs for next year will amount to R385.9 billion.
Godongwana added that government spending on important social responsibilities will be severely affected because the economy is not growing fast enough to support increasing expenditure on current debt levels.
“Government spending has exceeded revenue since the 2008 financial crisis. These rising annual budget deficits have reached an extent where the government will borrow an average of R553 billion per year over the medium term. As a result, gross debt rises from R4.8 trillion in 2023/2024 to R5.2 trillion in the next financial year. By 2025/2026, it will exceed the trillion rand mark.”
Below is the Minister’s MTBPS address: