South Africa sees debt peak at 78.9% of GDP (prev. saw 77.9%) and budget gap at 4.5% of GDP (prev. saw 4.7%) in 2025-26, Treasury to propose a legislated principles-based fiscal anchor in 2026 mid-term budget

• Will adjust personal income tax brackets for CPI.

South Africa's projected debt ratio has risen to 78.9% of GDP, indicating a concerning trend in fiscal sustainability, while the budget gap is narrowing to 4.5% from a previous 4.7%. This suggests some fiscal improvement, which may influence the Treasury's introduction of a fiscal anchor in the next budget, indicating a focus on long-term stability. The adjustments to personal income tax brackets to account for CPI could further affect disposable income and consumption going forward.