South Africa’s Treasury prepares fiscal discipline bill
By the AFREEQUE newsroom, based on Businessday
South Africa’s Treasury is preparing a bill that would require every government to set its fiscal objectives in a multi-year plan. The principles-based text, which would not set numerical thresholds, is expected to be presented to Parliament in 2027, Finance Minister Enoch Godongwana said, according to Businessday.
South Africa’s National Treasury plans to publish a draft bill establishing a fiscal discipline framework, Finance Minister Enoch Godongwana said. The bill would require each government formed after a general election to adopt a fiscal plan setting out its objectives, strategy, key assumptions and risks.
The bill is expected to be presented to Parliament in 2027. The framework, based on principles rather than numerical rules, aims to enshrine the sustainability of public finances in law while allowing room to adapt to economic developments, according to Enoch Godongwana. Authorities will have to explain to Parliament how their policy choices meet this requirement and report on their plan throughout the budget process.
The sustainability standard would be incorporated into the Public Finance Management Act, which would be amended. Legislation governing Parliament’s scrutiny of finance bills must also be amended to accommodate the new framework. The Treasury describes the reform as the most significant reorganisation of the public finance system since 1999.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
