The Treasury pledges to decrease the deficit and lower debt-service expenses in the 2025 Budget
The National Treasury has committed to maintaining the existing fiscal strategy, aimed at stabilizing public finances and fostering sustainable and inclusive economic growth. This commitment anticipates that the incoming administration will introduce its own perspectives and policies.
On Friday, Treasury stated its recognition of the need for a comprehensive review of the budget process, with the goal of identifying and implementing reforms to enhance the efficiency, transparency, and effectiveness of budgetary procedures.
The 2025 Budget, according to Treasury, will achieve a debt-stabilizing primary surplus in 2025/26, reduce the fiscal deficit to pre-pandemic levels, and stabilize debt-service costs relative to revenue.
"Resources will be allocated strictly within the parameters necessary to fulfill the objectives of the medium-term fiscal strategy outlined in the 2024 Budget Review," Treasury affirmed.
"In this context, if the economic outlook remains unchanged, no additional funds will be added to the overall budget. Any new spending needs arising from unforeseen or higher-than-expected revenues will be met first by reallocating funds from underperforming programs or through re-prioritization within departments or public entities, without permanent increases in expenditure."
The current fiscal strategy also involves reconfiguring the Budget Facility for Infrastructure to expand the project pipeline and explore alternative financing models outside the regular budget process. This initiative aims to maximize government resources by leveraging private sector investment and financing from development and international financial institutions. The goal is to enhance funding capacity and accelerate infrastructure development while improving its efficiency.
On Friday, Treasury stated its recognition of the need for a comprehensive review of the budget process, with the goal of identifying and implementing reforms to enhance the efficiency, transparency, and effectiveness of budgetary procedures.
The 2025 Budget, according to Treasury, will achieve a debt-stabilizing primary surplus in 2025/26, reduce the fiscal deficit to pre-pandemic levels, and stabilize debt-service costs relative to revenue.
"Resources will be allocated strictly within the parameters necessary to fulfill the objectives of the medium-term fiscal strategy outlined in the 2024 Budget Review," Treasury affirmed.
"In this context, if the economic outlook remains unchanged, no additional funds will be added to the overall budget. Any new spending needs arising from unforeseen or higher-than-expected revenues will be met first by reallocating funds from underperforming programs or through re-prioritization within departments or public entities, without permanent increases in expenditure."
The current fiscal strategy also involves reconfiguring the Budget Facility for Infrastructure to expand the project pipeline and explore alternative financing models outside the regular budget process. This initiative aims to maximize government resources by leveraging private sector investment and financing from development and international financial institutions. The goal is to enhance funding capacity and accelerate infrastructure development while improving its efficiency.
