Track, analyze, and understand South Africa's National Budget allocation, spending, and performance metrics in real-time.
Critical financial indicators from the 2025 National Budget framework and economic outlook
South Africa will reach the important milestone of debt stabilization in 2025/26 through the strengthening primary surplus. Debt is then projected to gradually decline to 75.1% by 2027/28.
Debt-service costs will consume R424.9 billion in 2025/26, or about 22 cents of every rand collected in revenue. These costs are expected to stabilize this year after years of continued growth.
| Metric | 2023/24 | 2024/25 | 2025/26 | 2026/27 | 2027/28 |
|---|---|---|---|---|---|
| Revenue (R trillion) | 1.95 | 2.03 | 2.22 | 2.38 | 2.52 |
| Revenue (% of GDP) | 27.5% | 27.1% | 27.8% | 27.9% | 27.8% |
| Expenditure (R trillion) | 2.26 | 2.40 | 2.59 | 2.70 | 2.83 |
| Expenditure (% of GDP) | 31.8% | 32.1% | 32.4% | 31.8% | 31.3% |
| Budget Balance (R billion) | -311.6 | -374.7 | -370.4 | -325.6 | -314.2 |
| Budget Balance (% of GDP) | -4.4% | -5.0% | -4.6% | -3.8% | -3.5% |
| Real GDP Growth | 0.7% | 0.8% | 1.9% | 1.7% | 1.9% |
| Debt-to-GDP Ratio | 72.8% | 74.1% | 76.2% | 75.9% | 75.1% |
| CPI Inflation | 6.0% | 4.4% | 4.3% | 4.6% | 4.4% |
The fiscal strategy remains on course, balancing critical spending measures with revenue increases through a 0.5 percentage point VAT increase.
Debt stabilization in 2025/26 marks an important milestone in South Africa's fiscal consolidation journey.
Economic development is the fastest-growing function at 8.1% annually, driven by infrastructure investments and job creation.
The social wage constitutes 61% of total non-interest spending, highlighting the budget's redistributive nature.
Detailed breakdown of the 2025/26 budget allocation by functional categories
Total: R2.59 trillion | Growth rate: 5.6% annual average over MTEF period
The social wage makes up 61% of total consolidated non-interest spending over the next three years
Additional funding of R21.3 billion has been allocated for basic education, including for hiring more teachers and expanding early childhood development coverage
R11.7 billion additional funding provided to hire more healthcare workers and strengthen medical supplies procurement
Social grants receive above-inflation increases to help vulnerable households cope with rising living costs
R9.4 billion allocated for rebuilding commuter rail infrastructure and R3.5 billion for municipal infrastructure disaster relief
R46.7 billion additional funding provided for strategic infrastructure projects to stimulate economic growth
Additional R10.1 billion allocated to strengthen core defence capabilities and border security
Debt-service costs will stabilize this year and gradually decline as share of revenue as the debt-to-GDP ratio peaks at 76.2% in 2025/26
This stabilization marks an important milestone in rebuilding the public finances
Set aside for unforeseen and unavoidable expenditure that may arise during the fiscal year
The economic classification shows how funds are spent across different categories of economic activity
Salaries and wages for public servants, including educators, healthcare workers, police, and other government employees.
Includes R23.4 billion allocated for the 2025 public-service wage agreement - the first three-year agreement since 2018.
Social grants, subsidies to public entities, and transfers to other levels of government.
Includes above-inflation increases in social grants to help vulnerable households cope with rising living costs.
Operational expenses, supplies, maintenance, and contracted services.
Funding prioritized for medical supplies, learning materials, and infrastructure maintenance.
Interest and fees paid on government debt. Consumes 21.7% of government revenue.
Will stabilize in the current year as debt reaches 76.2% of GDP in 2025/26 and declines thereafter.
Infrastructure development, equipment, and other capital assets.
Economic development is the fastest-growing function, with R46.7 billion in additional funding for strategic infrastructure projects.
Strategic investments in infrastructure to support economic growth and job creation
Total planned infrastructure investment over the next three years
The 2025 Budget allocates an additional R46.7 billion for strategic infrastructure projects to accelerate economic growth and create jobs
Regulations for public-private partnerships have been simplified to attract greater private-sector participation, with a target of R196.5 billion in private investment
Multiple funding windows introduced to accelerate approval and funding for strategic infrastructure projects across sectors
Reforms to ensure municipal-owned trading services are financially sustainable and efficiently provide water, electricity and refuse collection
Road infrastructure, including R100 billion by SANRAL
Electricity generation, transmission, and distribution
Dams, water treatment, and distribution systems
Hospital upgrades and new medical facilities
Schools, universities, and TVET college infrastructure
Housing and community infrastructure
Broadband networks, data centers, and digital services infrastructure
According to Treasury projections, every R1 invested in construction infrastructure generates R2.4 in total economic output across various sectors
Monitor budget implementation, report corruption, and participate in public budget processes
Detailed breakdown of South Africa's tax revenue sources and 2025/26 tax proposals
Total tax revenue for 2025/26
Expected additional tax revenue of R28 billion in 2025/26
Additional revenue targeted in 2025/26
Additional revenue targeted in 2026/27
Increase of the VAT rate by 0.5 percentage points in 2025/26 and by 0.5 percentage points in 2026/27, bringing it to 16% by 2026/27.
Additional essential food items added to the zero-rated basket to provide relief to lower-income households from the VAT increase.
Personal income tax brackets and rebates not adjusted for inflation in 2025/26, resulting in fiscal drag.
No increases to the general fuel levy to provide relief to consumers and businesses.
Increase in excise duties on alcohol and tobacco products, with rates increased by between 4.9% and 6.7%.
South Africa will transfer R73.6 billion to other SACU member states (Botswana, Lesotho, Namibia, and Eswatini) in 2025/26, reflecting shared customs and excise revenues under the regional agreement.
Social Development & Strategic Reforms
Comprehensive analysis of South Africa's social protection programs and key economic reforms
Social Protection & Reform Summary
Social Assistance Programs
Comprehensive breakdown of South Africa's social assistance framework and beneficiaries
Social Assistance Grant Details
Additional Social Support Programs
Education
Funding for basic education, higher education, and skills development, including R55.4 billion for the National Student Financial Aid Scheme.
Health Services
Support for public healthcare services including district health services, provincial hospitals, and central hospital services.
Community Development
Support for human settlements, municipal infrastructure, and public transport services to improve living conditions.
Employment Support
Funding for job creation initiatives, skills development, and labor market programs.
Strategic Economic & Social Reforms
Key structural reforms aimed at accelerating economic growth and improving service delivery
Energy Sector Reforms
Comprehensive restructuring of South Africa's energy sector to ensure supply security and transition to renewable sources.
Electricity Market Restructuring
Unbundling of Eskom into separate generation, transmission, and distribution entities to improve efficiency and allow private participation.
Renewable Energy Expansion
Procurement of new generation capacity through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Transport & Logistics Reforms
Restructuring of South Africa's transport and logistics networks to reduce costs, improve efficiency, and enhance competitiveness.
Freight Rail Reform
Introduction of third-party access to the freight rail network and corporatization of Transnet Freight Rail to improve performance.
Port Operations Enhancement
Enabling private sector participation in container terminal operations to improve efficiency and competitiveness.
Water Sector Reforms
Restructuring of water management institutions and improving water security, quality, and service delivery.
Water Infrastructure
Implementation of critical water infrastructure projects to ensure water security and expand access to unserved communities.
Resource Management
Implementation of integrated water resource management approaches and catchment management strategies.
Fiscal Policy Reforms
Strengthening South Africa's fiscal framework to ensure sustainability and create policy certainty.
Debt Stabilization
Measures to stabilize government debt at 76.2% of GDP in 2025/26 and reduce it thereafter.
Budget Process Reform
Review of the budget process to enhance medium-term planning, fiscal discipline, and spending efficiency.
Reform Implementation Progress
Tracking the implementation status of key structural reforms
Operation Vulindlela
A joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms. The initiative focuses on five key areas: electricity, water, transport and logistics, telecommunications, and visa reform.
Key Achievements:
Detailed Reform Implementation Status