Govt to borrow over R500 bil amid rising budget deficit: Godongwana - SABC News

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Govt to borrow over R500 bil amid rising budget deficit: Godongwana - SABC News
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Minister Godongwana says government will borrow an average of R553 billion in the mid-term.

Finance Minister Enoch Godongwana says the government will borrow an average of R553 billion per year over the medium term as a result of rising budget deficits. Delivering the mid-term budget this afternoon, Godongwana announced

“By 2025/26, it will exceed the R6 trillion mark. We now expect gross government debt to stabilise at 77 % of GDP by 2025/26. This is higher than the level we forecast in February. Over the next three years, debt-service costs as a share of revenue will increase from 20.7 % in 2023/24 to 22.1 % in 2026/27,” says Godongwana.Further reductions of R64 billion in 2024/25 and R69 billion in 2025/26 are proposed.

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