Budget 2026: Treasury signals plans to pursue a fiscal anchor

National Treasury has given some signal on the next steps in its plans to pursue a fiscal anchor as debt stabilisation turns a corner.

Minister of Finance Enoch Godongwana gave a brief update on the anchor when he delivered the national budget on Wednesday.

He said Treasury will introduce a proposal for a principle-based fiscal anchor in the Medium-Term Budget Policy Statement later in 2026, after thorough consultation in Cabinet, Parliament and with the public.

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Talks of adopting a fiscal anchor are part of pressure on South Africa to reform its fiscal policy to improve credibility, strengthen budget discipline and foster investor confidence.

Of the two options available to National Treasury, the country’s fiscal heads appear to be leaning towards a principle-based fiscal anchor, rather than a numerical debt rule.

This would essentially “integrate fiscal sustainability principles into the process of tabling and voting on budgets”.

The Director General at National Treasury, Duncan Pieterse, has defended the rationale to advise against a numerical rule.

“Technically, it's a bad idea, and if you look around the world and you look at how countries regularly violate numerical targets or structure a range of exemptions around numerical targets. We don't believe that it's credible.”

For the first time in 17 years, South Africa’s debt is expected peak at 78.9% in 2026, with a boost from commodity prices among factors easing pressure on public finances.