SA's expenses almost always exceed its revenue
A significant portion of South Africa’s budget is spent on servicing debt – R389-billion in 2024, according to the National Treasury. This exceeds allocations for basic education (R323-billion), health (R274-billion) and peace and security (R250-billion).
Debt service costs surpassed basic education spending after the 2021/22 financial year. The year before, debt repayment was the government’s fourth biggest expense after basic education, social protection and health.
South Africa’s debt-to-GDP ratio stood at 74.7% in 2024/25, far above the government’s original goal set in 2014 of keeping it below 40%. This ratio, which measures total debt as a percentage of GDP, reflects a country’s ability to meet its obligations.
Since democracy, government spending has exceeded revenue every year except for two (2006/07 and 2007/08). With slow economic growth and ongoing budget deficits, fiscal pressure is high, raising concerns about South Africa’s ability to manage its debt in the long term.
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