Treasury Reviews Financial Stability Measures for Economic Growth

National Treasury is strengthening its financial stability measures as part of government's broader strategy to support economic growth, restore investor confidence, and reduce long-term fiscal pressure on the country. Finance Minister Enoch Godongwana said the 2026 Budget marks an important turning point, with public debt expected to stabilise at 78.9% of GDP before gradually declining over the medium term, supported by a growing primary budget surplus and improved revenue collection. Treasury projects economic growth of 1.6% in 2026, rising toward 2% by 2028, driven by infrastructure investment, easing inflation, lower borrowing costs, and continued reforms in electricity, transport, and water systems. Government is also reviewing stronger fiscal rules, including a new principle-based fiscal anchor, to ensure future administrations maintain sustainable spending and debt management. Additional reforms to strengthen banking regulation, fight financial crime, improve financial sector oversight, and expand access to funding for businesses are also being prioritised to protect the economy against future shocks. Treasury says these measures are designed to create a more stable investment environment, unlock private-sector confidence, and ensure South Africa's recovery is built on sustainable growth rather than rising debt and short-term fiscal pressure.