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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 the South Africa’s ability to manage its debt in the long term.
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 the South Africa’s ability to manage its debt in the long term.